New US Iran sanctions wave includes $1.8B UAE banking action
Shafaq News- Washington/ Tehran
The US Treasury on Friday moved to cut Banque Misr UAE off from correspondent banking access to US financial institutions after the bank processed about $1.8 billion for 103 companies allegedly linked to Iranian shadow banking networks between January 2024 and June 2026.
The Treasury Department's Financial Crimes Enforcement Network (FinCEN) identified Banque Misr UAE as a “primary money laundering concern” and proposed barring US financial institutions from opening or maintaining correspondent accounts for the bank. The proposed measure applies only to Banque Misr's UAE operations.
Today, under Operation Economic Outcast, @FinCENnews proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to U.S. financial institutions. Additionally, Treasury’s Office of Foreign Assets Control sanctioned Bank Melli Dubai manager Reza Mohammad…
— Treasury Department (@USTreasury) August 28, 2026
Banque Misr UAE is a critical channel for Iran's access to US dollars and that its customers include alleged front companies used by Iran's Defense Ministry and Islamic Revolutionary Guard Corps (IRGC) to evade sanctions and launder money, the Treasury claimed.
The Treasury Department's Office of Foreign Assets Control (OFAC) also sanctioned Dubai-based Iranian national Reza Mohammad Taeedi, general manager of Bank Melli Iran's Dubai branch, and Hong Kong-registered Kameng Trading Limited. According to the Treasury, Bank Melli has facilitated billions of dollars in transactions through accounts controlled by the IRGC Quds Force, while sanctioned Iranian exchange house Pedram Pirouzan Exchange House used Kameng Trading to launder money for Iran.
On August 24, the US launched “Operation Economic Outcast,” a campaign targeting Iran's financial connections, oil sales, sanctions-evasion networks, and other sources of revenue. Treasury Secretary Scott Bessent stated that the campaign, launched at President Donald Trump's direction, aims to sever Iran's economic lifelines and increase pressure on entities facilitating its financial activity.
Iran has condemned the expanded US sanctions campaign, with the Foreign Ministry describing the measures as "state terrorism" and urging other countries not to enforce them.
