Washington moves to sever key Iranian lifeline by cutting Emirati bank off US financial system
US Treasury says lender processed some $1.8 billion for companies potentially tied to Iranian shadow banking networks
The US Treasury Department on Friday moved to cut Banque Misr UAE off from the US financial system, accusing it of processing some $1.8 billion for companies linked to Iranian shadow banking networks.
Treasury’s Financial Crimes Enforcement Network proposed barring US banks from maintaining correspondent accounts for Banque Misr UAE, saying the lender had become an important channel for Iran’s access to US dollars.
Treasury said the bank processed funds for 103 companies between January 2024 and June 2026, including apparent front companies linked to Iran’s Defense Ministry and the Islamic Revolutionary Guard Corps.
“We warned that Iran’s enablers cannot continue to enjoy access to the US dollar and the global financial system,” Treasury Secretary Scott Bessent said.
In a separate move, the Treasury Department sanctioned Reza Mohammad Taeedi, the head of Bank Melli’s Dubai branch, as well as Hong Kong-based Kameng Trading Limited over alleged involvement in Iranian sanctions evasion.
The measures were announced under Operation Economic Outcast, a campaign launched earlier this week aimed at cutting off Iran’s remaining financial channels. The proposed restrictions apply only to Banque Misr’s UAE operations.