US moves to cut Banque Misr UAE off from American financial system over alleged Iran links

International, Middle East, North America

WASHINGTON, United States (NPA) — The United States Department of the Treasury has proposed new measures that could cut Banque Misr UAE off from correspondent banking access to the American financial system over allegations that the bank processed billions of dollars for companies linked to Iranian shadow banking networks.

The action, announced on Friday under the newly launched Operation Economic Outcast, also includes sanctions against Reza Mohammad Taeedi, the manager of Bank Melli’s Dubai branch, and Hong Kong-based Kameng Trading Limited.

US Treasury Secretary Scott Bessent said the measures were part of Washington’s efforts to sever what it described as the remaining financial lifelines available to the Iranian government.

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“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime,” Bessent said.

“We also warned that Iran’s enablers cannot continue to enjoy access to the US dollar and the global financial system.”

According to the Treasury Department, Banque Misr UAE processed approximately $1.8 billion between January 2024 and June 2026 for 103 companies that US authorities believe could be connected to Iranian shadow banking networks.

The Treasury alleged that some of the bank’s customers included apparent front companies used to evade US sanctions and facilitate financial transactions linked to Iranian state institutions.

Iran has been subjected to extensive US economic sanctions for years, forcing the country to rely on complex financial networks operating across multiple jurisdictions to conduct international transactions.

Washington alleges that some of these networks are used to launder money, facilitate oil transactions, procure weapons and provide financial support to Iranian-backed groups across the Middle East.

FinCEN has now issued a Notice of Proposed Rulemaking declaring Banque Misr UAE a financial institution of “primary money laundering concern.”

Under the proposed rule, US financial institutions would be prohibited from opening or maintaining correspondent accounts for, or on behalf of, Banque Misr UAE.

American financial institutions would also be required to take steps to prevent transactions involving Banque Misr UAE from being processed through foreign correspondent banking accounts connected to the United States.

The Treasury clarified that the proposed action applies specifically to Banque Misr UAE and does not extend to Banque Misr operations in other countries.

The public will have 30 days to submit comments after the proposed rule is published in the Federal Register.

Meanwhile, the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Taeedi, the general manager of Bank Melli’s Dubai branch.

US authorities alleged that Bank Melli had facilitated billions of dollars in transactions involving accounts controlled by the Islamic Revolutionary Guard Corps and its Qods Force.

The Treasury also sanctioned Kameng Trading Limited, a Hong Kong-based company accused of helping sanctioned Iranian financial entities gain access to the international financial system.

The company was allegedly used by the sanctioned Pedram Pirouzan Exchange House, also known as Opal Exchange, to facilitate money laundering transactions for Iran.

The latest actions form part of Operation Economic Outcast, which Treasury Secretary Bessent announced on August 24.

The operation is aimed at identifying and targeting financial networks, intermediaries and businesses that US authorities believe help Iran evade sanctions, move oil revenues and access international financial markets.

The Treasury warned that foreign financial institutions and companies could face increased sanctions risks, including possible secondary sanctions, for knowingly facilitating significant transactions involving designated Iranian individuals or entities.

The US government said the latest measures were intended to increase pressure on Iran’s financial networks and restrict the ability of sanctioned entities to access the US dollar and the global financial system.