US threatens to cut third-country bank from dollar system over Iran ties

The US Treasury just pulled one of its most powerful financial weapons: threatening to disconnect a foreign bank from the dollar system entirely. On August 28, the Financial Crimes Enforcement Network proposed a rule to revoke Banque Misr UAE’s access to US correspondent banking, alleging the bank served as a pipeline for roughly $1.8 billion in transactions tied to Iranian shadow banking networks. The move is the sharpest action yet under “Operation Economic Outcast,” a campaign Treasury Secretary Scott Bessent announced on August 24 to financially isolate Iran. What Banque Misr UAE allegedly did According to FinCEN’s proposal, Banque Misr’s UAE branches facilitated access to US dollars for entities linked to the Iranian regime through an elaborate web of intermediaries. The alleged transactions, totaling approximately $1.8 billion, were tied to 103 companies operating between January 2024 and June 2026. Those aren’t random shell companies, either. Treasury officials allege that Banque Misr UAE’s customer base included entities connected to Iran’s Ministry of Defense, the Islamic Revolutionary Guard Corps, and individuals linked to Supreme Leader Mojtaba Khamenei. It’s worth notin...