The U.S. Department of the Treasury's Financial Crimes Enforcement Network proposed revoking a UAE-based bank's access to the U.S. financial system under Operation Economic Outcast, a sanctions enforcement initiative announced August 24, 2026.
Treasury estimated that Banque Misr UAE processed approximately $1.8 billion between January 2024 and June 2026 for 103 companies potentially part of Iranian shadow banking networks. The bank's customers include apparent front companies used by Iran's Ministry of Defense and the Islamic Revolutionary Guard Corps (IRGC) to evade U.S. sanctions, according to Treasury.
The Treasury Department's Office of Foreign Assets Control also sanctioned Reza Mohammad Taeedi, the general manager of Bank Melli's Dubai branch, and Kameng Trading Limited, a Hong Kong-based company that Treasury said aided a sanctioned Iranian exchange house in laundering money.
Treasury said Iran relies on shadow banking networks to access U.S. dollars, launder funds, procure weapons, and bankroll regional militant proxy groups. The proposed rule against Banque Misr UAE would prohibit U.S. financial institutions from opening or maintaining correspondent accounts for the bank. The public comment period on the proposed rule closes 30 days after publication in the Federal Register.