US Treasury Moves to Cut Banque Misr's UAE Branch From the Dollar System

The US Treasury's Financial Crimes Enforcement Network (FinCEN) proposed a rule on August 28, 2026 to revoke Banque Misr's UAE branch access to US correspondent banking. FinCEN alleges the branch facilitated roughly 1.8 billion dollars in transactions tied to Iranian shadow banking networks, involving 103 companies between January 2024 and June 2026. The move is part of "Operation Economic Outcast," the sanctions campaign Treasury Secretary Scott Bessent launched on August 24, 2026. The same day, the Treasury's Office of Foreign Assets Control also sanctioned Reza Mohammad Taeedi, described as a manager at Bank Melli's Dubai branch, and a Hong Kong based entity. FinCEN's proposed rule is not yet final and remains subject to a public comment period.