AUGUST 28, 2026 19:51

Updated: AUGUST 28, 2026 20:45

The US Treasury Department moved on Friday to cut Banque Misr UAE off from correspondent banking ties with American financial institutions, labeling the entity a key link in the Iranian regime's efforts to reach US dollars.

This step forms part of Operation Economic Outcast, an initiative aimed at dismantling the remaining financial channels that support the Islamic Revolutionary Guard Corps.

Treasury Secretary Scott Bessent stated that the department intends to eliminate every economic support line still available to Tehran and neutralize the threat posed by the Iranian regime.

He added that enablers of Iran can no longer benefit from the US dollar or worldwide financial networks, noting that Banque Misr UAE has now faced initial accountability measures for its ongoing assistance to the regime.

Officials estimate that Banque Misr UAE handled roughly 1.8 billion dollars involving 103 firms tied to Iranian shadow banking operations, a route Iran pursued after facing direct sanctions.

These shadow arrangements grant vital entry to US dollar correspondent banking links, allowing Iran to launder money, obtain weapons, and finance its regional proxy organizations.

Banque Misr ranks among Egypt's earliest and largest banks, established in 1920 to support trade with the UAE and assist Egyptian nationals living in the Gulf region.

Treasury Identifies Front Firms Linked to IRGC and Defense Ministry

According to the Treasury, the bank's clients encompass apparent front entities employed by Iran's Ministry of Defense and the Islamic Revolutionary Guard Corps to bypass sanctions, along with operations laundering funds for Supreme Leader Mojtaba Khamenei.

A Treasury official clarified that the measures target only Banque Misr branches in the UAE, permitting continued dollar activity via the Cairo headquarters and other overseas locations such as Paris, Frankfurt, Riyadh, Beirut, and Djibouti.

Egypt's central bank confirmed on Friday that the US steps impact solely the UAE branches of Banque Misr and spare other Egyptian banks, while noting ongoing contacts between Egyptian authorities and US officials regarding the actions.

The Treasury also imposed new sanctions on Bank Melli on Friday, charging that it processed billions of dollars in transactions through accounts held by the Islamic Revolutionary Guard Corps Qods Force and enabled the IRGC and its Qods Force to transfer funds both within and beyond Iran.

The bank further provided financing to Iranian-aligned partners and proxies, including in Iraq, officials stated.

Reza Mohammad Taeedi, who manages the bank's Dubai branch, received designation as a Specially Designated Global Terrorist for acting on behalf of Bank Melli.

Hong Kong-based Kameng Trading Limited faced sanctions for assisting designated Iranians in reaching the global financial system.

Actions Follow Prior Moves Against Far-Left Networks

The new sanctions follow by two days earlier Treasury measures against far-left terrorist networks, including Italy's Autistici Inventati, the UK-based Palestine Action group, and the transnational Masar Badil organization.

Officials accused Autistici Inventati of providing digital tools and services to Antifa cells and other violent far-left extremists, while Masar Badil was described as operating as a front for the Popular Front for the Liberation of Palestine.

Bessent warned that far-left extremists and their supporters should expect full use of economic tools against them, emphasizing that political terrorism has no place in society and that financial support lines will continue to be severed.

The US has identified far-left terrorist groups as one of three primary terrorist threats facing the country.

In July, Bessent highlighted the growing embrace of organized violence by far-left terrorists and noted that Treasury actions underscore the commitment to disrupting their operational infrastructure.

Reuters contributed to this report.