The United States has moved to restrict Banque Misr UAE’s access to the American financial system, accusing the United Arab Emirates-based bank of serving as a significant channel for Iran to access U.S. dollars and evade sanctions.
The proposed action was announced today under “Operation Economic Outcast,” the Trump administration’s expanding economic pressure campaign aimed at cutting off what the U.S. Treasury Department describes as Iran’s remaining financial lifelines.
The Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, issued a notice of proposed rulemaking that would prohibit U.S. financial institutions from opening or maintaining correspondent accounts for, or on behalf of, Banque Misr UAE.
According to the Treasury Department,the proposal would apply specifically to Banque Misr UAE and would not affect Banque Misr operations in other countries. The Treasury said that it had identified the bank as a financial institution operating outside the United States that is of “primary money laundering concern” under Section 311 of the USA PATRIOT Act.
The department alleged that between January 2024 and June 2026, Banque Misr UAE processed approximately $1.8 billion in transactions involving 103 companies that Treasury said could be connected to Iranian shadow banking networks. Iran is already subject to extensive U.S. sanctions, forcing Tehran to rely on financial networks operating across multiple jurisdictions to generate revenue and maintain access to international currencies, particularly the U.S. dollar.
According to Treasury, these networks are used to move funds, evade sanctions and support activities linked to Iran’s military and regional partners. The department alleged that some Banque Misr UAE customers included apparent front companies connected to Iran’s Ministry of Defense and the Islamic Revolutionary Guard Corps, or IRGC.
The Treasury also alleged that the bank had been used to facilitate money laundering for Iranian Supreme Leader Mojtaba Khamenei. Under the proposed rule, U.S. financial institutions would be required not only to avoid maintaining correspondent accounts for Banque Misr UAE but also to take reasonable steps to prevent transactions involving the bank from being processed through correspondent accounts in the United States.
Financial institutions would also be required to apply enhanced due diligence to guard against the use of their foreign correspondent accounts to process transactions involving Banque Misr UAE.
Among those designated was Reza Mohammad Taeedi, the General Manager of Bank Melli’s Dubai branch. According to Treasury, Bank Melli has facilitated billions of dollars in transactions through accounts controlled by Iran’s Islamic Revolutionary Guard Corps Qods Force, or IRGC-QF.
The department alleged that the bank had enabled the IRGC-QF and its parent organisation, the IRGC, to move funds into and out of Iran. Treasury also said accounts at Bank Melli had been used to provide financial support to Iranian-aligned groups and partners, including in Iraq.
Treasury also imposed sanctions on Hong Kong-based Kameng Trading Limited, which it accused of helping sanctioned Iranian individuals gain access to the international financial system. According to the department, the company was used by Pedram Pirouzan Exchange House, also known as Opal Exchange, to facilitate money laundering linked to Iran.
A Move To Reinforce Broader Campaign Against Iran
US Treasury Secretary Scott Bessent said that the proposed action was intended to reinforce Washington’s broader campaign against Iran and financial institutions accused of helping Tehran evade sanctions.
“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime. We also warned that Iran’s enablers cannot continue to enjoy access to the U.S. dollar and the global financial system.
“Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime.”
Scott Bessent
The latest measures form part of Operation Economic Outcast, which Bessent announced on August 24 as a broader campaign to target Iranian revenue streams and financial facilitators. The Treasury said that it had mapped networks and channels that Iran allegedly uses to smuggle oil, evade sanctions and generate funds.
The campaign is designed to increase the sanctions risks faced by banks, companies and other entities that continue to conduct business with Iran or are found to be facilitating sanctions evasion. The Treasury warned that entities involved in money laundering or sanctions evasion on behalf of Iran could face exclusion from the U.S. financial system.
The administration has also said the campaign expands the potential use of secondary sanctions against foreign businesses and financial institutions that continue to engage with sanctioned Iranian entities. The proposed restrictions on Banque Misr UAE represent one of the most significant financial measures announced under the campaign so far because correspondent banking access plays a crucial role in connecting foreign banks to the U.S. financial system and dollar-denominated transactions.
If finalised, the measure could make it substantially more difficult for Banque Misr UAE to conduct transactions involving U.S. financial institutions. The Treasury Department said that Operation Economic Outcast would continue to target financial networks and facilitators that Washington believes are helping Iran sustain its economy and bypass international restrictions.
READ ALSO: Nepal Ministers Donate Salaries To Flood Relief Fund
