The Treasury Department on Friday moved to sanction the United Arab Emirates branch of Egyptian lender Banque Misr, accusing it of funneling funds on behalf of Iran’s shadow banking network.
Treasury intends to revoke the branch’s access to U.S. financial institutions, the department said in a statement. The move would effectively sever Banque Misr UAE from dollar-clearing and other U.S.-dollar transactions.
According to Treasury, Banque Misr UAE processed roughly $1.8 billion over the past two years for about 100 companies that are potentially tied to Iran’s covert financial infrastructure.
The action lands four days after Treasury Secretary Scott Bessent launched “Operation Economic Outcast,” a campaign aimed at isolating Iran from the global economy. On Monday, Bessent promised a “major announcement” of a financial institution being sanctioned by the end of the week, and Friday’s designation appears to fulfill that pledge.
President Donald Trump has described the overall sanctions effort as the economic equivalent of D-Day. But Treasury’s actions against the Islamic Republic so far have been narrow in scope, targeting specific intermediaries rather than broad sectors of the Iranian economy or major state-linked banks.
Alongside the Banque Misr UAE action, Treasury blacklisted Reza Mohammad Taeedi, the general manager of the Dubai branch of Iran’s Bank Melli. The department also sanctioned Hong Kong-based Kameng Trading Limited, alleging the firm acts as a front company that launders money for an Iranian exchange house.
Iran’s oil lifeline
Iran’s crude exports remain a crucial revenue source, with China the main buyer. A U.S. Navy blockade has cut those shipments significantly, but tankers carrying millions of barrels of Iranian oil are still waiting off Asia to discharge cargo in China, according to data from Kpler.
Asked whether Washington would go after Chinese institutions involved in such trade, Bessent said Monday that “no one is above the reach of U.S. sanctions.”
“If they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted,” Bessent said.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/28/treasury-uae-banque-misr-sanctions-iran.html
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