US hits Iranian shadow bank in UAE with sanctions
Photo: The US has imposed sanctions on Banque Misr UAE (Getty Images)
Banque Misr UAE has had its access to correspondent banking relationships with US financial institutions restricted. It is a long-standing partner of the Iranian regime, according to the US Department of the Treasury.
US imposes sanctions on bank in UAE
Washington accuses this financial institution of helping Iran circumvent sanctions.
The bank played a key role in providing Iranian shadow financial networks with access to the international banking system, according to the statement.
From early 2024 to mid-2026, approximately $1.8 billion flowed through Banque Misr UAE to more than a hundred companies that may be linked to such networks.
"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," says US Treasury Secretary Scott Bessent.
Other sanctions
In addition, the US Treasury Department's Office of Foreign Assets Control (OFAC) imposed sanctions on Reza Mohammad Taeedi, the head of Bank Melli's Dubai branch.
OFAC also imposed sanctions on a Hong Kong shell company that helped launder funds for a sanctioned Iranian stock exchange.
Banque Misr UAE
According to estimates by the Department of the Treasury, 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.
On August 24, a new US operation was launched to weaken the Iranian regime and its allies. It was named Economic Outcast.
The new US sanctions against Iran will combine economic isolation with a prolonged blockade of the Strait of Hormuz.
Trump downplays the importance of both diplomacy and military action, relying instead on economic pressure against Iran: maintaining sanctions and a naval blockade of Iranian ports.
