1.8 billion dollars in two and a half years: the Egyptian bank that helped Iran

This is one of the first steps taken by the Trump administration as part of what the US president defined as an “economic D-Day” against Iran, in the hope that the move will lead to the collapse of the Ayatollah regime. As expected, on the other hand, most of the leaders of the Islamic Republic are trying to convey resilience, although President Massoud Pazkhian did not deny in an interview with local television that the economic sanctions have consequences.

The “Wall Street Journal” reports that the American step causes great concern in Cairo, since Bank Misr is a prominent Egyptian financial institution – even if at this stage the steps concern only its Emirati branch. The Egyptian Foreign Ministry stated that it is in contact with the American authorities regarding the measures, which do not affect banks in Egypt or branches of Bank Misr outside the United Arab Emirates.

A significant institution for the Egyptian economy

Bank Miser is one of the most prominent financial institutions in Egypt, and is owned by the state. The local elite founded it as early as 1920 as the first bank that was fully Egyptian owned. The bank was nationalized in 1960, and today it is the second largest in Egypt. The main concern of the al-Sisi regime, according to the “Wall Street Journal”, is that other Egyptian financial institutions may also find themselves subject to closer supervision.

The Egyptian banking institution has been active in the United Arab Emirates for 40 years, and operates branches in Dubai, Abu Dhabi, Sharjah and Ras Al Khaimah. Its activities in the country include corporate banking, investments and personal banking. It is also very significant for the Egyptian economy itself, because Egyptian workers who live in the Gulf countries use it to send money home, which is an important source of bringing foreign currency into Egypt.

The Finance Secretariat stated that among the clients of the Emirati branch of Miser Bank are straw companies that serve the Iranian Ministry of Defense and the Revolutionary Guards. Following this, it was decided in Washington to completely block the access of the Emirati branch of the Bank of Egypt to the financial institutions in the US. In addition, the parent company in Egypt of the Bank of Misr and other branches of the Egyptian institution were prohibited from conducting transactions with American banks for the Emirati branch.

At the same time, the Treasury Secretariat also imposed sanctions on the Iranian citizen Reza Mohammad Taidi, CEO of the Dubai branch of the Iranian Mali Bank, as well as on the Hong Kong company “Kameng Trading”, which according to Washington serves as a straw company that launders capital for the Iranians. Let’s recall that at least 80% of Iranian oil exports go to China, and therefore the dark trade between the parties is bustling.