Bessent: Weekly Iran Bank Sanctions, “Financial Violence” if Necessary

Treasury Secretary Scott Bessent said Sunday that the United States will roll out new secondary sanctions against Iran on a weekly basis, starting with banks, and told the Associated Press the campaign will amount to “financial violence if we have to.” The comments came in Asheville, North Carolina, ahead of a two-day Group of 20 finance ministers and central bank governors meeting, and one day after U.S. forces struck two Islamic Revolutionary Guard Corps rocket launchers on Iran’s Larak Island in the Strait of Hormuz. Friday’s first public bank action under Operation Economic Outcast targeted the United Arab Emirates branches of Egypt’s Banque Misr.

Bessent told Reuters the Treasury Department is “likely to unveil weekly new secondary sanctions” aimed at increasing pressure on Tehran, with an initial focus on financial institutions. “You’re going to see a lot more of these every week,” he said. “We’re starting with the banks, and we’re telling the banks it’s not okay to have Iranian money and to aid the regime.” After the Banque Misr UAE measure, he said the next step may be cutting an institution entirely off from the dollar-based financial system. He added, “There can be no leakage,” and told counterparts they are “either with us or you’re with the Iranians.” He said he would press that message in G20 bilaterals and the larger session. The AP interview used sharper language: “This is going to be financial violence if we have to. We are showing people that we know who you are, you know who you are, and this has got to stop.” He said the administration plans to sanction another bank this week.

On Friday, Treasury’s Financial Crimes Enforcement Network proposed a rule under Section 311 of the USA PATRIOT Act that would designate Banque Misr’s UAE operations a primary money-laundering concern and revoke their correspondent-banking access to U.S. institutions. Treasury said the UAE branches processed about $1.8 billion between January 2024 and June 2026 for 103 companies it assessed as potential Iranian shadow-banking fronts, including entities used by Iran’s Ministry of Defense, the IRGC, and networks tied to Supreme Leader Mojtaba Khamenei. Bessent said Iran’s enablers “cannot continue to enjoy access to the U.S. dollar” and that Banque Misr UAE “decided to find out the hard way.” The proposed rule applies only to the Emirati branches, not Banque Misr’s Cairo headquarters or other overseas offices; it faces a 30-day comment period before a final rule. The same day, OFAC sanctioned Reza Mohammad Taeedi, manager of Bank Melli’s Dubai branch, and a Hong Kong front company alleged to have laundered funds for a sanctioned Iranian exchange house. The UAE Central Bank said it would conduct an urgent forensic lookback. Banque Misr said it was reviewing the notice.

Operation Economic Outcast was announced Aug. 24 with sectoral determinations covering digital assets, technology, gold, aviation, and shipping, plus designations of more than 60 entities, individuals, and vessels. Bessent has said countries that keep doing business with Iran will face secondary sanctions after a defined period to unwind. China remains Iran’s largest oil customer; Bessent told Reuters most of those purchases have been curbed by the U.S. blockade of Iranian ports and that oil stored on tankers is dwindling. He said “all options are on the table” regarding Beijing and that he would speak with Chinese counterparts at the G20. The Larak strike was the first publicly acknowledged U.S. hit on Iranian forces in weeks; Iran said it answered with missiles and drones against U.S.-used bases in Jordan, which Amman said intercepted. The financial and military steps landed inside the same 48-hour window as Bessent arrived in Asheville to argue that G20 members must cut remaining economic ties to Iran or risk losing dollar access themselves.