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Turkish Regulator Revokes Iran's Bank Mellat License
Confirmed
In Short: Turkiye's banking watchdog has revoked the operating license of Iran's Bank Mellat in Istanbul.
Turkiye's Banking Regulation and Supervision Agency (BDDK) revoked the operating license of Iran’s Bank Mellat, Istanbul Turkey Central Branch, according to a decision published in the Official Gazette on Saturday.
The BDDK cited a clause in Turkiye’s banking law that allows the revocation of a bank’s license if its continued operation is deemed to pose a risk to depositors’ rights or to the security and stability of the financial system.
Bank Mellat has been subject to Western sanctions for years over accusations that Tehran was pursuing a nuclear weapon under the guise of a civil nuclear program.
The sanctions were lifted as part of a 2015 deal between Tehran and world powers to curb Iran’s nuclear ambitions, but were reinstated in 2018 when the US unilaterally withdrew from the agreement.
In 2019, Bank Mellat faced further US and Gulf sanctions after being named as one of 25 entities linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).
Earlier this month, the US Treasury Department imposed sanctions on a small Turkish investment bank and two subsidiaries over alleged ties to Iran, accusing Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) of facilitating transactions for the IRGC and providing Iranian government access to move funds internationally.
The Turkish notice did not cite US measures against Bank Mellat or identify specific operational issues behind the decision.
What this adds
The decision to revoke Bank Mellat's license in Istanbul does not specify the exact reasons behind the move, distinguishing it from recent US sanctions on Turkish financial institutions.
Background
Bank Mellat is one of the most active Iranian banks. Its name means "Bank of the Nation".
What's confirmed
- “It has been decided to revoke the operating licence of Bank Mellat, Head Office in Tehran, Istanbul Turkey Central Branch,” read the decision by the Banking Regulation and Supervision Agency (BDDK), published in the Official Gazette on Saturday.
- The regulator said the decision was taken under a clause of Turkiye’s banking law allowing a bank’s licence to be revoked or withdrawn if its continued operation is deemed to pose a risk to depositors’ rights or to the security and stability of the financial system.
- Bank Mellat has been subject to Western sanctions for years over accusations that Tehran was pursuing a nuclear weapon under the cover of a civil nuclear programme.
- Turkiye’s banking watchdog has revoked the operating licence of Iranian lender Bank Mellat’s branch in the Turkish city of Istanbul.
- Those sanctions were lifted as part of a landmark 2015 deal between Tehran and world powers to curb Iran’s nuclear ambitions.
- Bank Mellat was hit by further US and Gulf sanctions in 2019 after being named as one of 25 entities linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).
- Earlier this month, the US Treasury Department imposed sanctions on a small Turkish investment bank and two subsidiaries over alleged ties to Iran.
- The Treasury Department accused Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) of facilitating “tens of millions of dollars’ worth of transactions for the Islamic Revolutionary Guard Corps-Qods Force” and providing the Iranian government with banking access to move its funds internationally.
What's still developing
- Nothing material beyond the confirmed record.