The U.S. Department of the Treasury moved on Friday to cut Banque Misr UAE out of the American banking system, alleging the institution processed nearly $1.8 billion for Iranian-linked shadow networks over a two-and-a-half-year period.
The action, taken under a broader U.S. push dubbed Operation Economic Outcast, includes a proposed rule from the Financial Crimes Enforcement Network (FinCEN) that labels the United Arab Emirates branch of the bank a “primary money laundering concern.” If finalized, the rule will ban domestic financial firms from opening or maintaining correspondent accounts for Banque Misr UAE. U.S. banks would also have to monitor their foreign accounts to stop transactions involving the branch from sneaking through.
Federal officials said the restriction applies solely to Banque Misr’s UAE operation, leaving the parent lender’s branches elsewhere unaffected.
“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime,” Treasury Secretary Scott Bessent said in a statement. “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.”
According to the Treasury, Banque Misr UAE handled funds for 103 companies tied to Iranian shadow banking between January 2024 and June 2026. Investigators contend that these networks helped Tehran dodge long-standing trade restrictions, purchase arms, bankroll regional proxy groups, and launder cash for Iran’s Defense Ministry, the Islamic Revolutionary Guard Corps (IRGC), and Iranian Supreme Leader Mojtaba Khamenei.
Alongside the FinCEN finding, the Treasury’s Office of Foreign Assets Control (OFAC) rolled out individual sanctions against Reza Mohammad Taeedi, an Iranian national who manages Bank Melli’s branch in Dubai. The agency said Bank Melli has routed billions of dollars through accounts run by the IRGC’s Qods Force to fund allied militias abroad, including groups based in Iraq. Taeedi was designated under counterterrorism authorities.
OFAC also targeted Kameng Trading Limited, a firm based in Hong Kong. Officials claim the company acted as a front to wash funds on behalf of the Pedram Pirouzan Exchange House, a sanctioned Iranian currency outfit also operating under the name Opal Exchange.
The measures automatically freeze any assets the targeted individuals and companies hold in the United States and bar Americans from doing business with them. Foreign institutions that continue working with them face the risk of secondary sanctions or the loss of their own U.S. banking ties.
The actions mark the latest step under Operation Economic Outcast, an enforcement campaign Secretary Bessent launched on August 24, 2026, aimed at choking off illicit Iranian oil revenue and foreign banking conduits.
FinCEN said the draft rule regarding Banque Misr UAE will remain open for public comment for 30 days after its official publication in the Federal Register before regulators move to finalize it.
READ: Florida GOP To Rally Statewide Candidates At Tampa Leadership Forum Tuesday
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
