US Treasury proposes cutting Banque Misr UAE from US banking over Iran ties
This digest was compiled by AI from multiple sources — links to the originals are below.
The US Treasury proposed a rule to revoke Banque Misr UAE's correspondent banking access to US financial institutions, citing its role as a critical hub for Iran's access to US dollars. The proposal, announced by FinCEN under Operation Economic Isolation, follows transactions of approximately $1.8 billion for 103 companies potentially linked to Iran's shadow banking network between January 2024 and June 2026. Egypt's central bank said the measure affects only Banque Misr's UAE branches and that the foreign ministry is in contact with US authorities.
Key Facts
- FinCEN proposed a rule to revoke Banque Misr UAE's correspondent banking access to US financial institutions under Operation Economic Isolation.
- The Treasury said Banque Misr UAE processed approximately $1.8 billion in transactions for 103 companies potentially linked to Iran's shadow banking network between January 2024 and June 2026.
- OFAC sanctioned Bank Melli Dubai manager Reza Mohammed Taeedi and a Hong Kong-based shell company that helped launder funds for a sanctioned Iranian exchange house.
- The proposed rule is subject to a 30-day public comment period before taking effect.
- Egypt's central bank said the measure affects only Banque Misr's UAE branches and that the foreign ministry is in contact with US authorities.
The Treasury Proposal
The US Treasury Department announced that FinCEN proposed a rule to revoke Banque Misr UAE's correspondent banking access to US financial institutions. The proposal was made under Operation Economic Isolation, a Treasury initiative targeting financial networks supporting Iran. The Treasury described Banque Misr UAE as a critical hub for the Iranian government's access to US dollars. Between January 2024 and June 2026, the bank processed approximately $1.8 billion in transactions for 103 companies that may be part of Iran's shadow banking network. The proposed rule will undergo a 30-day public comment period before it can take effect.
Sanctions on Individuals and Entities
OFAC imposed sanctions on Reza Mohammed Taeedi, the Dubai manager of Bank Melli, an Iranian state-owned bank. OFAC also sanctioned a Hong Kong-based shell company that helped launder funds for a sanctioned Iranian exchange house. Treasury Secretary Scott Bessent said the Treasury will cut off all remaining economic lifelines to Tehran and warned that those supporting Iran cannot continue to benefit from access to the US dollar and global financial system. Bessent said Banque Misr UAE chose to learn this lesson the hard way and that today marks the first step in holding it accountable for its continued and severe support of the Iranian regime.
Egyptian Response
Egypt's central bank stated that the US measure affects only Banque Misr's branches in the UAE and does not cover any other Egyptian bank. The central bank added that Egypt's foreign ministry is in contact with US authorities regarding the measures taken.
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US Treasury proposes cutting Banque Misr UAE from US banking over Iran ties
