US moves to sever Banque Misr UAE access to American financial system

The US Treasury Department has proposed barring American banks from maintaining correspondent accounts for Banque Misr UAE, citing its role as a significant channel for Iran’s access to US dollars. Officials allege the lender processed approximately $1.8 billion for companies connected to Iranian shadow banking networks. According to the Treasury, the bank facilitated transactions for 103 companies between January 2024 and June 2026, including entities allegedly acting as fronts for Iran’s Ministry of Defense and the Islamic Revolutionary Guard Corps. US Treasury Secretary Scott Bessent stated that those enabling Iran cannot continue to enjoy access to the US dollar and the global financial system. Concurrently, the Treasury sanctioned Reza Mohammad Taeedi, head of Bank Melli’s Dubai branch, and the Hong Kong-based Kameng Trading Limited for alleged sanctions evasion. These measures are part of Operation Economic Outcast, a campaign aimed at severing Iran’s remaining financial lifelines.