The U.S. Department of the Treasury’s Financial Crimes Enforcement Network proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to U.S. financial institutions.
Iran is subject to U.S. sanctions and relies on multi-jurisdictional shadow banking networks that provide access to U.S. dollar correspondent banking relationships to generate revenue abroad. The shadow banking networks launder funds, procure weapons and bankroll regional terrorist proxy groups.
Banque Misr UAE is a critical node for the Iranian regime’s access to U.S. dollars, the Treasury alleges, and processed approximately $1.8 billion for 103 companies that potentially are part of Iranian shadow banking networks between January 2024 and June 2026.
The proposed action against Banque Misr UAE would cut the Iranian regime off from a key financial lifeline and sanctions evasion vehicle.
“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime,” Secretary of the Treasury Scott Bessent said. “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.”