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US targets $1.8B Iran financial channel in latest sanctions crackdown
FinCEN proposed prohibiting US financial institutions from maintaining correspondent accounts for the bank.
The US is escalating its campaign against Iran’s financial networks by targeting Banque Misr UAE, which Treasury says processed billions of dollars for companies potentially connected to Tehran’s shadow banking system.
The Financial Crimes Enforcement Network on Friday proposed barring US financial institutions from providing correspondent banking services to the UAE-based lender as part of Operation Economic Outcast.
According to Treasury, Banque Misr UAE handled roughly $1.8 billion from January 2024 through June 2026 for 103 companies that may be part of Iranian shadow banking networks. Those networks provide Iran with access to US dollar correspondent accounts despite comprehensive US sanctions, enabling the regime to move money, procure weapons and finance regional terrorist proxies.
Treasury said some Banque Misr UAE customers appear to be front companies connected to Iran’s Ministry of Defense and the Islamic Revolutionary Guard Corps, while others allegedly helped launder funds on behalf of Supreme Leader Mojtaba Khamenei.
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The proposed FinCEN rule would prohibit US banks from opening or maintaining correspondent accounts for Banque Misr UAE and impose additional safeguards on transactions involving the bank.
Treasury also announced sanctions against Reza Mohammad Taeedi, who runs Bank Melli’s Dubai branch, for acting on behalf of Bank Melli. The department said Bank Melli had facilitated billions of dollars in transactions through accounts controlled by the IRGC’s Qods Force and helped move funds for Iran-aligned proxies, including groups in Iraq.