The U.S. Department of the Treasury’s Financial Crimes Enforcement Network proposed barring U.S. financial institutions from opening or maintaining correspondent accounts for Banque Misr UAE after finding the bank to be of primary money laundering concern. The Office of Foreign Assets Control separately sanctioned Reza Mohammad Taeedi, general manager of Bank Melli’s Dubai branch, and Hong Kong-based Kameng Trading Limited for facilitating Iranian access to the international financial system. The proposed rule would also require U.S. financial institutions to take reasonable steps not to process transactions involving Banque Misr UAE through foreign correspondent accounts and to apply special due diligence to those accounts. Treasury estimates that the bank processed about USD 1.8 billion between January 2024 and June 2026 for 103 companies potentially connected to Iranian shadow banking networks. The measure applies only to Banque Misr UAE, not Banque Misr operations elsewhere. The OFAC designations block the targets’ property and interests in property within U.S. jurisdiction, as well as entities owned 50% or more by blocked persons. Treasury also warned that foreign financial institutions conducting certain transactions involving the designated parties may face secondary sanctions, including restrictions on U.S. correspondent or payable-through accounts.
2026-08-28U.S. Department of the Treasury
U.S. Department of the Treasury proposes cutting Banque Misr UAE correspondent access and sanctions Iranian financial facilitators
The U.S. Department of the Treasury proposed cutting Banque Misr UAE off from U.S. correspondent banking after estimating that it processed about USD 1.8 billion for companies potentially linked to Iranian shadow banking networks. Treasury also sanctioned a Bank Melli Dubai manager and a Hong Kong company for facilitating Iranian access to the international financial system.