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.
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.
There was no immediate statement from Banque Misr or the UAE branch.
The announcement comes after Treasury Secretary Scott Bessent demanded that all branches of Bank Melli, Iran’s leading commercial bank, be closed. He threatened that any financial institution involved in money laundering for Iran would face removal from the U.S. dollar system and lose access to American financial markets.
The targeting of Banque Misr UAE is the first branch targeted via a FinCEN correspondent banking rule under Economic Outcast.
Contact the author
Please read our comment policy before commenting.