US Treasury Targets UAE Bank Branch in Escalating Iran Sanctions
The US Treasury Department on Friday proposed revoking the correspondent banking access of Banque Misr UAE, the United Arab Emirates branch of Egypt's Banque Misr, describing it as a "critical node" in Iran's access to US dollars, according to a Treasury statement.
The action is part of Operation Economic Outcast, a sanctions campaign launched by Treasury Secretary Scott Bessent to sever all of Iran's economic ties globally. The Treasury said the proposal aims to cut off remaining financial lifelines sustaining Iran's Islamic Revolutionary Guard Corps (IRGC).
"We promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime," Bessent said in the statement. "We also warned that Iran's enablers cannot continue to enjoy access to the US 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."
$1.8 Billion in Suspicious Transactions
The Treasury estimates that Banque Misr UAE processed approximately $1.8 billion over the past two years for about 103 companies that are potentially part of Iran's shadow banking networks. These networks provide "key access to US dollar correspondent banking relationships," according to the Treasury, which added that Iran uses them to launder funds, procure weapons, and bankroll regional proxy groups.
The bank, founded in 1920 to facilitate trade between Egypt and the UAE and serve Egyptian expatriates in the Gulf, counts "apparent front companies" among its customers, the Treasury said.
Additional Sanctions on Bank Melli and Hong Kong Entity
In the same action, the Treasury blacklisted Iranian national Reza Mohammad Taeedi, general manager of the Dubai branch of Iran's Bank Melli, and sanctioned Hong Kong-based Kameng Trading Limited for allegedly acting as a front company that launders money for an Iranian exchange house.
The Treasury also announced new sanctions against Bank Melli, alleging it facilitated billions of dollars' worth of transactions through accounts controlled by the IRGC's Qods Force (IRGC-QF).
Operation Economic Outcast and Broader Context
The action against Banque Misr UAE comes four days after Bessent launched Operation Economic Outcast on August 24. On that day, Bessent described the sanctions as an "economic D-Day," a phrase echoed by President Donald Trump, who has called the campaign the economic equivalent of the Allied invasion of Normandy.
Bessent said Monday that the Treasury would make "a major announcement of a financial institution being sanctioned by the end of this week," and when asked whether the US would sanction Chinese institutions, he said "no one is above the reach of US sanctions."
"If they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted," Bessent added.
The sanctions come amid a US Navy blockade of the Strait of Hormuz that has slashed Iran's crude oil exports, a crucial source of revenue. According to data from Kpler, tankers loaded with millions of barrels of Iranian oil are waiting to discharge in China, Iran's main customer.
Prior Actions Against Far-Left Networks
Friday's sanctions follow a Treasury crackdown two days earlier on what it called "far-left terrorist networks," targeting Italy's Autistici Inventati, Palestine Action, and the transnational group Masar Badil. In July, Bessent had warned of far-left terrorists "increasingly embracing organized, deadly violence in pursuit of their objectives."