FinCEN proposes US correspondent banking ban for Banque Misr UAE
FinCEN has proposed barring Banque Misr’s UAE operations from US correspondent banking after identifying the branches as a primary money laundering concern linked to Iranian finance.
WASHINGTON, September 1, 2026 — The US Treasury Department’s Financial Crimes Enforcement Network has proposed cutting Banque Misr’s operations in the United Arab Emirates off from correspondent banking relationships with US financial institutions.
FinCEN said it found Banque Misr UAE to be a financial institution operating outside the United States of “primary money laundering concern.” Under the proposed Section 311 measure, US financial institutions would be prohibited from opening or maintaining correspondent accounts for Banque Misr UAE.
Banks would also be required to take reasonable steps to prevent foreign correspondent accounts from being used to process transactions involving Banque Misr UAE and apply enhanced due diligence to guard against such activity. The proposed measure applies specifically to Banque Misr’s UAE operations and does not extend to the bank’s operations in Egypt or other countries.
Treasury said Banque Misr UAE had become a significant access point for Iranian entities seeking US dollars. It estimated that the bank processed about $1.8 billion between January 2024 and June 2026 for 103 companies potentially connected to Iranian shadow banking networks.
According to Treasury, customers included suspected front companies associated with Iran’s Ministry of Defense and the Islamic Revolutionary Guard Corps that were allegedly used to evade US sanctions and move funds through the international financial system.
The action forms part of Treasury’s Operation Economic Outcast, an initiative announced Aug. 24 aimed at disrupting financial channels used by Iran to generate revenue, evade sanctions and access the global banking system.
Separately, the Treasury Department’s Office of Foreign Assets Control sanctioned Reza Mohammad Taeedi, general manager of Iran’s Bank Melli branch in Dubai, and Hong Kong-based Kameng Trading Limited for alleged involvement in Iran-related financial activity.
The FinCEN measure remains a proposed rule rather than a final prohibition, meaning the correspondent banking restrictions are not yet in force.
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