US Treasury revokes Iranian access to US dollars via UAE bank

The U.S. Treasury Department has taken a significant step to curb Iran's financial capabilities by proposing to revoke Banque Misr UAE's correspondent banking access to U.S. financial institutions. The Treasury identified the bank as a "critical node" enabling the Iranian regime's access to U.S. dollars.

This move is part of a broader U.S. government initiative, Operation Economic Outcast, which aims to cut off remaining "financial lifelines" that sustain Iran's Islamic Revolutionary Guard Corps (IRGC). Treasury Secretary Scott Bessent stated the department's commitment to severing every economic lifeline Tehran has left and warned that Iran's enablers would no longer enjoy access to the U.S. dollar and the global financial system.

"Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime," Bessent said. The Treasury estimates that Banque Misr UAE processed approximately $1.8 billion for 103 companies potentially linked to Iranian shadow banking networks. These networks are crucial for Iran to circumvent direct U.S. sanctions, providing access to U.S. dollar correspondent banking relationships.

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We also warned that Iran’s enablers cannot continue to enjoy access to the US dollar and the global financial system.

According to the Treasury, Iran utilizes these shadow banking networks for money laundering, procuring weapons, and financing its regional terrorist proxy groups. The targeted companies reportedly include "apparent front companies" used by Iran's Ministry of Defense and the IRGC to evade sanctions and launder money on behalf of Iranian Supreme Leader Mojtaba Khamenei.

While the action specifically targets Banque Misr's UAE branches, the bank can continue dollar transactions through its head office in Cairo and other international branches in locations like Paris, Frankfurt, and Beirut. Egypt's central bank confirmed that the U.S. action does not extend to other Egyptian banks and is in contact with U.S. authorities regarding the measures.

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Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime.