The US Treasury Department announced another step under Operation Economic Outcast, its campaign to cut the Iranian regime off from its remaining sources of financing.
The Treasury Department's Financial Crimes Enforcement Network proposed revoking Banque Misr UAE, the United Arab Emirates branch of the Egyptian bank, from access to correspondent accounts at US financial institutions. According to the Treasury Department, between January 2024 and June 2026, the bank processed approximately $1.8 billion for 103 companies potentially linked to Iranian "shadow banking" networks.
Its customers allegedly included front companies used by Iran's Ministry of Defense and the Islamic Revolutionary Guard Corps to evade sanctions, procure weapons, finance Iranian proxies and launder money on behalf of Iranian Supreme Leader Mojtaba Khamenei. "We also warned that Iran's enablers cannot continue to enjoy access to the US dollar and the global financial system," Treasury Secretary Scott Bessent said. "Banque Misr UAE decided to find out the hard way."
The proposed restrictions on Banque Misr UAE have not yet taken effect and will be opened to public comment before they are finalized.
At the same time, the US imposed sanctions on Reza Mohammad Taeedi, general manager of the Dubai branch of Iran's Bank Melli, who Washington says helped the Islamic Revolutionary Guard Corps and its Qods Force move billions of dollars and finance Iranian-aligned proxies in the region. Sanctions were also imposed on Hong Kong-based Kameng Trading Limited, which was accused of laundering money for an Iranian exchange house.
State Department spokesperson Tommy Pigott said Operation Economic Outcast was continuing "in full force" and that the latest measures were intended to intensify Washington's pressure campaign against Iran.
According to Pigott, Bank Melli has served as a vital financial hub for Iran's armed forces, including the Islamic Revolutionary Guard Corps-Qods Force and the Ministry of Defense and Armed Forces Logistics. "As the regime prioritizes its malign activities above the needs of its people, we will sever the economic lifelines sustaining it," Pigott said.
