BaFin revokes license of Bank Saderat Iran in Germany

Germany’s financial regulator, BaFin, has revoked the banking license of Bank Saderat Iran’s Hamburg branch and ordered its liquidation. The decision follows years of regulatory issues, including a 2023 audit that identified serious organizational deficiencies and violations of legal requirements which the institution failed to rectify.

The bank, which had operated in Germany since 1962, held approximately €62.4 million in assets and employed 13 people at the time of its closure. A Hamburg court has appointed FUW Treuhand Projekt Management GmbH as the liquidator to manage the winding down of operations. While approximately €200,000 in customer deposits remain, the impact of EU sanctions on these funds is a significant factor.

This regulatory action coincides with similar international moves against the lender. Lebanon recently revoked the bank’s local authorization to protect its financial system from contamination risks and to meet international standards set by the IMF and the Financial Action Task Force. Additionally, the United Kingdom has indicated it will reject new license applications from Iranian banks subject to U.S. sanctions.