The U.S. Treasury on Friday moved to sanction the United Arab Emirates branch of Egypt’s Banque Misr, saying it intends to revoke Banque Misr UAE’s access to U.S. financial institutions. Treasury alleges Banque Misr UAE processed about $1.8 billion over the past two years for roughly 100 companies that are potentially part of Iran’s shadow banking network. The action is part of Operation Economic Outcast, launched by Treasury Secretary Scott Bessent, who had promised a major financial-institution announcement by week’s end and warned that "no one is above the reach of U.S. sanctions." Treasury simultaneously blacklisted Iranian national Reza Mohammad Taeedi, the general manager of Bank Melli’s Dubai branch, and sanctioned Hong Kong entity Kameng Trading Ltd. for allegedly laundering money for an Iranian exchange house. The department framed the measures against the backdrop of Iran’s reliance on crude oil exports, China as a principal customer, and shipping activity in Asia, which Treasury said includes tankers loaded with Iranian oil waiting to discharge in China. If finalized, the proposed rule would cut Banque Misr UAE off from U.S. dollar correspondent banking services, restricting its ability to transact through U.S. financial channels.
