U.S. Tightens Financial Pressure on Iran, Targets Bank Melli Network and Dubai-Based Banking Operations
By Suman Munshi | IBG NEWS
Kolkata | August 28, 2026
The United States has announced a fresh round of financial sanctions targeting individuals and entities it says are helping sustain Iran’s financial infrastructure and facilitate access to the international banking system.
Under what Washington describes as “Operation Economic Outcast,” the U.S. has designated Reza Mohammad Taeedi, identified as the manager of the Dubai branch of Iran’s Bank Melli. According to the U.S. government, Bank Melli has played an important role in providing financial services to elements of Iran’s armed forces, including the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), both of which are already under U.S. sanctions.
The latest measures also extend beyond Iran’s borders. Washington has sanctioned a Hong Kong-based company that it says assisted individuals and entities designated by the United States in gaining access to the international financial system.
Proposed action against Banque Misr UAE
In a parallel development, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed a measure aimed at restricting Banque Misr UAE’s correspondent banking access to U.S. financial institutions.
The Treasury Department considers the UAE-based bank to be an important channel through which the Iranian regime can obtain access to U.S. dollars. If implemented, the proposed measure could further complicate Iran-linked financial transactions involving the U.S. banking system.
Washington vows continued pressure
The U.S. statement said the latest measures form part of a broader campaign intended to disrupt what Washington describes as the Iranian regime’s illicit financial activities.
The administration argued that Iran’s leadership continues to prioritize activities described by the United States as destabilizing or malign, rather than the economic needs of the Iranian population. Washington said it would therefore continue targeting individuals and organizations involved in financial activities on behalf of the Iranian government, including personnel associated with Iranian banks operating outside the country.
Legal basis for the sanctions
The sanctions announced on August 28 are being imposed under Executive Order 13224, as amended, a U.S. counterterrorism authority, and Executive Order 13902, which provides authority to target individuals and entities operating in Iran’s financial sector.
FinCEN’s proposed action concerning Banque Misr UAE is being pursued under Section 311 of the USA PATRIOT Act, which gives the U.S. Treasury Department authority to address financial institutions or jurisdictions considered to present particular money-laundering or illicit-finance risks.
The latest move represents another escalation in Washington’s efforts to restrict the Iranian regime’s access to international financial channels and dollar-based transactions, particularly through banking networks and intermediaries operating outside Iran.
Source: U.S. Department of State / U.S. Department of the Treasury
Reporting & Rewrite: Suman Munshi, IBG NEWS
