The US Treasury launched Operation Economic Outcast on August 24, 2026, a campaign targeting Iran’s financial networks by going after banking intermediaries operating in Dubai, Istanbul, and Baghdad. FinCEN proposed revoking the correspondent banking privileges of Banque Misr UAE, which allegedly processed approximately $1.8 billion for 103 companies suspected of running Iranian shadow banking operations between January 2024 and June 2026. OFAC simultaneously designated Reza Mohammad Taeedi, general manager of Bank Melli’s Dubai branch, for facilitating transactions supporting the IRGC-Qods Force and its proxy networks in Iraq. Kameng Trading Limited, a Hong Kong-based company accused of providing sanctioned Iranian individuals with indirect access to international finance, was also designated. For international banks operating in the Middle East, this campaign serves as a reminder that correspondent banking relationships carry real compliance risk: processing transactions for questionable counterparties can be sufficient to trigger sanctions without proven complicity.
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