The U.S. Treasury Department on Friday announced new restrictions on the United Arab Emirates branch of the Egyptian state-owned bank Banque Misr as part of Operation Economic Outcast, the Trump administration’s new strategy to economically isolate Iran.
In a statement, the Treasury said the department’s Financial Crimes Enforcement Network proposed a rule that would “revoke Banque Misr UAE’s correspondent banking access to U.S. financial institutions” over its affiliations with Iran.
Reza Mohammad Taeedi, the regional bank manager for Bank Melli Dubai, was also targeted by sanctions under Treasury’s Office of Foreign Assets Control, according to the statement.
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The new rule prohibits U.S. financial institutions from maintaining accounts for or on behalf of Banque Misr UAE. American banks are also required to take “reasonable steps” not to process accounts connected with the branch, according to Treasury’s website.
The restrictions apply only to the UAE branch of Banque Misr, not to branches in other countries.
The UAE branch of Banque Misr processed approximately $1.8 billion worth of transactions for over 100 companies allegedly linked to Iran’s shadow banking networks from January 2024 to June 2026, according to Treasury estimates.
The restrictions apply only to the UAE branch of Banque Misr, not to branches in other countries. The action will take effect after a 30-day public comment period.
There was no immediate statement from Banque Misr or the UAE branch.
The announcement comes after Treasury Secretary Scott Bessent announced Operation Economic Outcast, an expansion of secondary sanctions aimed at cutting Iran off from the world economy.
More specifically, Mr. Bessent threatened any financial institution that maintains economic ties to Iran with removal from the U.S. dollar system, a major action that would upend global markets.
Mr Bessent demanded that all branches of Bank Melli, Iran’s leading commercial bank, be closed and threatened similar action against state-run banks across the world.
The targeting of Banque Misr UAE is the first branch targeted via a FinCEN correspondent banking rule under Economic Outcast.
However, the new sanctions stop short of specifically targeting the major financial institutions that link the Iranian economy to world markets, particularly those based in China, Russia, Turkey and Pakistan.
China, Iran’s most important trading partner, said this month that it had no plans to cut off trade with Iran and that it would not abide by unilateral U.S. sanctions.
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