The U.S. Department of the Treasury has expanded sanctions on Iran as part of an “economic exclusion operation,” targeting channels Tehran allegedly uses to access the U.S. dollar and the global financial system. It proposed barring Banque Misr (UAE) from maintaining correspondent accounts with U.S. financial institutions.
The U.S. Financial Crimes Enforcement Network (FinCEN) announced a proposed rule to revoke Banque Misr (UAE)’s access to U.S. correspondent banking services. This move follows the bank’s designation as a foreign financial institution of “primary money laundering concern,” according to a Treasury statement.
The proposed measure is subject to a public comment period ending 30 days after its publication in the Federal Register and does not extend to Banque Misr’s operations in other countries, the statement noted.
**Transactions Worth $1.8 Billion**
The Treasury estimated that Banque Misr (UAE) processed approximately $1.8 billion in transactions for 103 companies—potentially linked to Iranian shadow banking networks—between January 2024 and June 2026.
The Treasury described the bank as a key link enabling the Iranian regime’s access to the dollar, alleging that some of its clients are front companies used by Iran’s Ministry of Defense and the Islamic Revolutionary Guard Corps (IRGC) to evade U.S. sanctions and launder money.
Treasury Secretary Scott Bessent stated that the U.S. has warned entities aiding Iran that they would lose access to the dollar and the global financial system. He characterized the proposed measure as a first step toward holding Banque Misr (UAE) accountable for what he described as its support for the Iranian regime. Under the proposed rule, U.S. financial institutions would be prohibited from opening or maintaining correspondent accounts for the bank; they would also be required to take reasonable steps to prevent the processing of transactions linked to it through the correspondent accounts of foreign financial institutions, according to the statement.
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