Banque Misr UAE Processed Suspected Billions for Iranian Regime in Just 2.5 Years
WASHINGTON, D.C. -Today, under Operation Economic Outcast, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to U.S. financial institutions.
“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime,” said Secretary of the Treasury Scott Bessent. “We also warned that Iran’s enablers cannot continue to 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.”
Additionally, Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Reza Mohammad Taeedi, the manager of Bank Melli’s Dubai branch. OFAC also sanctioned a Hong Kong-based front company that has helped launder funds for a sanctioned Iranian exchange house.
BANQUE MISR UAE IS A KEY FINANCIAL LIFELINE FOR THE REGIME
Treasury assesses that Banque Misr UAE is a critical node for the Iranian regime’s access to U.S. dollars. Treasury estimates that between January 2024 and June 2026, Banque Misr UAE processed approximately $1.8 billion for 103 companies that are potentially part of Iranian shadow banking networks.
Because Iran is already subject to comprehensive U.S. sanctions, in order to generate revenue abroad, it relies on multi-jurisdictional shadow banking networks that provide key access to U.S. dollar correspondent banking relationships. Iran uses these shadow banking networks to launder funds, procure weapons, and bankroll its regional terrorist proxy groups.
Banque Misr UAE’s customers include apparent front companies used by Iran’s Ministry of Defense and the Islamic Revolutionary Guard Corps to evade U.S. sanctions, as well as to launder money on behalf of Iranian Supreme Leader Mojtaba Khamenei.
FinCEN’s proposed action against Banque Misr UAE would cut off a key financial lifeline and sanctions evasion vehicle for the Iranian regime. Under Operation Economic Outcast, financial institutions around the world face heightened sanctions risk due to their exposure to Banque Misr UAE and other Iranian financial facilitators.
OFAC SANCTIONS ADDITIONAL FINANCIAL FACILITATORS
OFAC is taking additional action against Bank Melli and Iran’s shadow banking network. Iranian national Reza Mohammad Taeedi serves as the general manager of Bank Melli’s Dubai Branch. Bank Melli has facilitated billions of dollars’ worth of transactions through accounts controlled by the Islamic Revolutionary Guard Corps Qods Force (IRGC-QF). It has allowed the IRGC-QF and its parent organization, the IRGC, to move funds inside and outside of Iran. The IRGC-QF’s accounts at Bank Melli have also been used to fund Iranian-aligned proxies and partners, including in Iraq.
Hong Kong-based Kameng Trading Limited has aided sanctioned Iranian persons in accessing the international financial system. Sanctioned Iranian exchange house Pedram Pirouzan Exchange House, also known as Opal Exchange, has used Kameng Trading Limited to launder money for Iran. Pedram Pirouzan Exchange House was designated pursuant to E.O. 13902 for operating in the financial sector of the Iranian economy.
Reza Mohammad Taeedi is being designated pursuant to E.O. 13224, as amended, a counterterrorism authority, for having acted or purported to act for or on behalf of, directly or indirectly, Bank Melli. OFAC is designating Kameng Trading Limited pursuant to E.O. 13902 for operating in the financial sector of the Iranian economy.
OPERATION ECONOMIC OUTCAST IS ISOLATING THE IRANIAN REGIME
Announced by Secretary Bessent on August 24, 2026, Operation Economic Outcast is severing the remaining financial lifelines that sustain the Iranian regime. Treasury has mapped the networks, facilitators, and financial channels that Iran uses to smuggle oil, evade sanctions, and fund terror. Working with partners across the U.S. government, along with our allies, Treasury is targeting any source of the regime’s illicit revenue.