The United States on August 28 intensified its campaign against Iran’s remaining financial channels, pairing new Treasury sanctions with a proposed rule that would restrict a UAE bank’s access to the U.S. financial system.
The State Department said Operation Economic Outcast “continues in full force.” Officials announced sanctions on Reza Mohammad Taeedi, manager of the Dubai branch of Iran’s Bank Melli, and on a Hong Kong-based company accused of helping designated Iranian individuals and entities reach the international financial system. The Treasury Department identified that company as Kameng Trading Limited.
FinCEN also proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to U.S. financial institutions. Treasury said the bank is a critical node for the Iranian regime’s access to U.S. dollars and estimated that between January 2024 and June 2026 it processed about $1.8 billion for 103 companies that may be part of Iranian shadow banking networks.
“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.”
OFAC said Taeedi is being designated under Executive Order 13224, as amended, for acting on behalf of Bank Melli. Kameng Trading Limited is being designated under Executive Order 13902 for operating in Iran’s financial sector. Treasury said Bank Melli has facilitated large-scale transactions through accounts linked to the Islamic Revolutionary Guard Corps Qods Force.
FinCEN’s notice of proposed rulemaking, issued under section 311 of the USA PATRIOT Act, would bar U.S. banks from opening or maintaining correspondent accounts for Banque Misr UAE. The proposed measure applies only to the bank’s UAE operations, not to Banque Misr branches in other countries. The public comment period will close 30 days after publication in the Federal Register.
State Department Spokesman Thomas “Tommy” Pigott said the United States will continue targeting people and firms that conduct illicit finance for the Iranian regime, including staff of Iranian banks operating abroad.
