US Treasury Secretary Scott Bissett recently discussed various pressing issues, including economic sanctions on Iran, in an interview with CNBC News. One of the key topics was the closure of Bank Misr's branch in Dubai, which had been facilitating transactions worth over $1.8 billion for the Iranian regime. Bissett emphasized that the branch would be shut down as part of the US Treasury's efforts to exert pressure on Iran through economic measures.
The US Treasury Secretary highlighted that his department has been granted significant powers to impose sanctions since the 9/11 attacks. Recently, they have been utilizing these powers to target Iran's economy, including sectors such as aviation, maritime transport, cryptocurrency, and gold. Bissett mentioned that five new sanctions were imposed on Iran just a month ago, which have had a substantial impact on the country's economy.
Bissett provided insight into the specific measures being taken against Iranian entities. He stated that by September 23, all Iranian airlines would be grounded globally due to the sanctions. This would be achieved by preventing them from refueling, landing, or selling tickets, effectively excluding any non-compliant entities from the dollar-based financial system. The Treasury Secretary also warned that any parties facilitating these activities would face consequences.
The US Treasury has already imposed sanctions on three banks, including Bank Misr's Dubai branch, which was found to be involved in large-scale transactions with Iran. Bissett confirmed that the branch would be closed, along with another Turkish bank and a Russian bank, due to their involvement in similar activities. These measures aim to restrict Iran's access to the global financial system and increase economic pressure on the regime.
The Central Bank of Egypt (CBE) had previously issued a statement regarding the proposed US Treasury regulation targeting Bank Misr's branches in the United Arab Emirates (UAE). The CBE and the UAE's central bank confirmed their cooperation and coordination in ensuring that Bank Misr's UAE branches continued to operate normally. The Egyptian bank's branches in the UAE would take necessary steps within the specified timeframe to comply with the regulations.
In August, the CBE addressed rumors about the potential impact of US sanctions on Bank Misr's Dubai branch, stating that the measures would only affect the bank's transactions with dollar-based correspondents and would not extend to the Egyptian banking sector or Bank Misr's operations in Egypt. The CBE emphasized the resilience of Egypt's banking sector and its ability to withstand external developments.
The US Treasury's move to close Bank Misr's Dubai branch is part of a broader effort to increase economic pressure on Iran. The sanctions aim to restrict the regime's access to the global financial system and limit its ability to conduct international transactions. The closure of the branch is expected to have significant implications for Iran's economy and may lead to further measures against entities facilitating transactions with the Iranian regime.
Key points
- The US Treasury has imposed sanctions on Bank Misr's Dubai branch, which will be closed due to its involvement in large-scale transactions with Iran.
