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Turkish Regulator Revokes Iran's Bank Mellat License
Confirmed
In Short: Turkish authorities revoked the operating license of Iran's Bank Mellat in Istanbul, citing risks to financial stability, according to a decision published in the Official Gazette on Saturday.
The Banking Regulation and Supervision Agency (BDDK) said the decision was made under a clause of Turkey’s banking law that allows a bank’s license to be revoked if its continued operation poses a risk to depositors’ rights or financial system stability.
Bank Mellat, one of Iran’s largest private banks, has faced Western sanctions for years over accusations of supporting Iran’s nuclear program.
The Turkish regulator’s decision did not cite US sanctions or specify operational issues, but it comes amid increased pressure from the US on financial institutions with ties to Iran.
Earlier this month, the US Treasury Department imposed sanctions on Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) over alleged ties to Iran’s Islamic Revolutionary Guard Corps (IRGC).
According to the bank’s website, its Turkish operations provided financial services supporting trade and joint projects between Turkey and Iran.
The regulator’s board adopted the decision on September 19, following a decision by Turkey’s banking regulator over the Tehran-based bank.
The Iranian government is the largest shareholder of Bank Mellat, and the bank has been under sanctions since 2019 for alleged involvement in financially supporting the IRGC.
The decision was made in accordance with Article 71(1)(b) of Banking Law No. 5411, which addresses activities that pose a risk to depositors’ rights and confidence in the financial system.
Bank Mellat was established in 1980 through the merger of 10 banks that operated before the Islamic revolution in Iran.
The move comes two weeks after Washington slapped sanctions on a Turkish bank over alleged ties to Iran’s IRGC.
The decision by the Turkish regulator does not specify the exact operational issues or sanctions that prompted the revocation.
The impact of this decision on Turkish-Iranian trade and financial relations remains to be seen.
What's confirmed
- The Banking Regulation and Supervision Agency (BDDK) said the decision was made under a clause of Turkey’s banking law that allows a bank’s license to be revoked if its continued operation poses a risk to depositors’ rights or financial system stability.
- Bank Mellat, one of Iran’s largest private banks, has faced Western sanctions for years over accusations of supporting Iran’s nuclear program.
- The Turkish regulator’s decision did not cite US sanctions or specify operational issues, but it comes amid increased pressure from the US on financial institutions with ties to Iran.
- Earlier this month, the US Treasury Department imposed sanctions on Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) over alleged ties to Iran’s Islamic Revolutionary Guard Corps (IRGC).
- According to the bank’s website, its Turkish operations provided financial services supporting trade and joint projects between Turkey and Iran.
- The regulator’s board adopted the decision on September 19, following a decision by Turkey’s banking regulator over the Tehran-based bank.
- The Iranian government is the largest shareholder of Bank Mellat, and the bank has been under sanctions since 2019 for alleged involvement in financially supporting the IRGC.
- The decision was made in accordance with Article 71(1)(b) of Banking Law No. 5411, which addresses activities that pose a risk to depositors’ rights and confidence in the financial system.
- Bank Mellat was established in 1980 through the merger of 10 banks that operated before the Islamic revolution in Iran.
- The move comes two weeks after Washington slapped sanctions on a Turkish bank over alleged ties to Iran’s IRGC.
- The decision by the Turkish regulator does not specify the exact operational issues or sanctions that prompted the revocation.
- The impact of this decision on Turkish-Iranian trade and financial relations remains to be seen.
What's still developing
- “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.
- Turkiye’s banking watchdog has revoked the operating licence of Iranian lender Bank Mellat’s branch in the Turkish city of Istanbul.