US removes Iran-backed bank from US financial system

Châu Anh |

The US is imposing additional sanctions to tighten Iran's financial channels, including banks accused of supporting Tehran's underground financial network.

On August 28 (local time), according to Xinhua news agency, the US Treasury Department proposed new measures to limit a bank accused of helping Iran access the USD and evade sanctions.

The Financial Crime Enforcement Network (FinCEN) under the US Treasury Department proposed cutting access to the US agent banking system for Banque Misr UAE. This is part of a new sanctions campaign against Iran.

US Treasury Secretary Scott Bessent said this measure is part of an operation called "Operation Economic Outcast", with the goal of cutting off Iran's remaining financial resources.

According to the US Treasury Department, Banque Misr UAE is an important link helping Iran access the USD. From January 2024 to June 2026, this bank handled about 1.8 billion USD of transactions with 103 companies that the US believes may belong to Iran's underground banking networks.

The US accuses these activities of creating conditions for Iran to maintain its financial resources and evade sanctions.

If applied, the new measure will cause Banque Misr UAE to lose access to the agent banking system of US financial institutions. This may limit the bank's ability to conduct transactions in USD and access to the US financial system.

Washington also imposed sanctions on Reza Mohammad Taeedi, an Iranian citizen and General Director of the Dubai branch of Melli Bank.

The US Treasury Department accused Melli Bank of facilitating transactions worth billions of USD through accounts controlled by the Quds Force of the Iranian Islamic Revolutionary Guard Corps (IRGC).

Mr. Bessent warned that any organization that supports Iran in money laundering or evades sanctions is at risk of being removed from the US financial system.

Reacting to this move, Iranian Foreign Minister Seyed Abbas Araghchi criticized Washington's campaign as "economic terrorism" and called on the United Nations to condemn US measures.

The new move shows that Washington is continuing to focus on banks and financial institutions that are said to help Tehran maintain cash flow and access the international financial system.

Châu Anh
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