US Cuts Off Dubai Bank That Served Iran's Shadow Networks for $1.8 Billion from the Dollar

The US Department of the Treasury has restricted Dubai-based Banque Misr UAE's access to correspondent relationships with American financial institutions. As reported by RBC-Ukraine citing a statement from the department, Washington accuses the financial institution — a long-time partner of the Iranian regime — of helping Iran circumvent sanctions. According to the Treasury's assessment, the bank played a key role in providing Iranian shadow financial networks with access to the international banking system.

Scale of Operations

According to the US Department of the Treasury, between January 2024 and June 2026, approximately 1.8 billion dollars passed through Banque Misr UAE for the benefit of 103 companies potentially part of Iranian shadow banking networks. Thus, over two and a half years, the bank became one of the main channels enabling Iranian structures to bypass the sanctions perimeter and operate in dollars.

Washington's Position

"We warned that those who facilitate Iran cannot continue to enjoy access to the US dollar and the global financial system. Banque Misr UAE chose to learn this the hard way," said US Treasury Secretary Scott Bessent. The statement underscores that restricting access to correspondent accounts at American banks effectively deprives the institution of the ability to conduct dollar settlements, which is a critical blow for a global bank.

Related Sanctions

In addition to the bank, the Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions on Reza Mohammad Teymouri, head of the Dubai branch of Bank Melli. In addition, a Hong Kong front company fell under the restrictions, which, according to the department, helped launder funds for a sanctioned Iranian exchange. The totality of the measures points to a deliberate effort to sever individual links in Iran's financial infrastructure.

Context of Operation "Economic Exile"

The new restrictions fit into a broader context: on August 24, a US operation to weaken the Iranian regime and its allies, dubbed "Economic Exile," was launched. According to reports, US sanctions policy against Iran combines economic isolation with a prolonged blockade in the Strait of Hormuz. Meanwhile, as noted earlier, Washington is betting on economic pressure — maintaining sanctions and a naval blockade of Iranian ports — while relegating both diplomatic and military tools to the background.