On Friday, August 28, the US Department of the Treasury continued to advance the “Operation Economic Outcast” targeting Iran. The Treasury Department announced the expulsion of Banque Misr UAE, the Egypt-based bank’s branch in the UAE, from the global financial system and imposed sanctions on a Hong Kong company suspected of laundering money for Iran.
The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) proposed a rule on Friday to sever Banque Misr UAE’s access to correspondent bank accounts in US financial institutions, cutting off its channels to obtain US dollars.
Treasury Secretary Scott Bessent stated in a press release, “The Treasury Department is committed to cutting off every economic lifeline of the Tehran regime and ultimately ending the threat posed by the Iranian regime.” Bessent also warned that entities assisting Iran cannot continue to have access to the US dollar and the global financial system. Banque Misr UAE persisted in violating the rules, prompting action to hold them accountable for their continued and serious support of the Iranian regime.
In addition, the Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned Reza Mohammad Taeedi, the manager of Bank Melli’s Dubai branch. OFAC also sanctioned a shell company based in Hong Kong, which had assisted a sanctioned Iranian currency exchange in money laundering.
The Treasury Department assessed that Banque Misr UAE is a key node for the Iranian regime to access US dollars. Between January 2024 and June 2026, the bank processed approximately $1.8 billion, involving 103 companies potentially linked to Iran’s shadow banking network.
Due to comprehensive US sanctions imposed on Iran, the Iranian regime relies on shadow banking networks across jurisdictions to generate revenue abroad. These networks provide crucial channels to access US dollars through intermediary relationships. Iran utilizes these shadow banking networks for money laundering, weapons procurement, and funding its proxy terrorist organizations in the region.
Customers of Banque Misr UAE include obvious shell companies used by the Iranian Ministry of Defense and the Islamic Revolutionary Guard Corps to evade US sanctions, as well as launder money on behalf of Iran’s Supreme Leader Mojtaba Khamenei.
The Treasury Department warned in a press release that FinCEN’s action against Banque Misr UAE will cut off a key financial lifeline of the Iranian regime and its channels to evade sanctions. Under “Operation Economic Outcast,” global financial institutions engaging in business with Banque Misr UAE and other entities assisting Iran in financial activities will face escalating sanction risks.
On Friday, the US Treasury Department also imposed sanctions on other entities aiding Iranian financial activities, including a company in Hong Kong.
The Treasury Department stated in a press release that the Hong Kong-based company, “Kameng Trading Limited,” was involved in assisting sanctioned Iranian entities to access the international financial system and engage in money laundering activities for the sanctioned Iranian exchange house “Pedram Pirouzan Exchange House.”
The Treasury Department indicated that the Department’s Office of Foreign Assets Control (OFAC) is taking further actions against Bank Melli and Iran’s shadow banking network. Iranian citizen Reza Mohammad Taeedi served as the general manager of Bank Melli’s Dubai branch. Bank Melli facilitated transactions worth billions of dollars through accounts controlled by the Islamic Revolutionary Guard Corps’ Quds Force (IRGC-QF). The bank allowed IRGC-QF and its parent organization, the Islamic Revolutionary Guard Corps (IRGC), to transfer funds domestically and internationally. Accounts opened by IRGC-QF at Bank Melli were also used to finance Iranian-aligned proxies and partners, including such forces in Iraq.
On August 24, Bessent announced the “Operation Economic Outcast” against Iran aimed at severing the remaining financial lifelines that sustain the Iranian regime. The Treasury Department stated that it has identified networks, facilitators, and financial channels used by Iran for smuggling oil, evading sanctions, and financing terrorist activities. It is cooperating with various US government departments and allies to take action against any sources of illicit income of that regime.