Jeremy Paner Discusses U.S. Treasury’s First Action Targeting a Bank Under “Operation Economic Outcast”

Jeremy Paner spoke with Arabian Gulf Business Insight about the U.S. Treasury Department’s proposal to cut off Banque Misr UAE from the U.S. financial system over allegations that it handled nearly $2 billion in transactions linked to Iran since 2024.

Paner said the action “is particularly striking because of the long-standing special relationship between the U.S. Treasury and the UAE government.”

“The Emiratis generally cooperate with the U.S. Treasury to address sanctions and money laundering concerns,” he said. “I am confident that was the case here and there is likely more to be announced soon.”

The article notes that, if finalized, the designation would bar U.S. banks from providing Banque Misr UAE with correspondent banking services. While the Egyptian parent company is not directly impacted, Paner said the action could have broader consequences.

“…it’s going to cause real problems for the Egyptian bank because every bank around the world is going to be looking at the non-UAE branches more carefully,” he said.

Paner also noted that, unlike sanctions imposed by the Treasury Department’s Office of Foreign Assets Control, the Treasury’s Financial Crimes Enforcement Network’s designation would not technically freeze Banque Misr UAE’s U.S. assets but would make accessing them exceedingly difficult.

Read the article.