# Sanctions on Iranian financial institutions

> Live situation record from CLSTR: https://clstr.news/situations/sanctions-on-iranian-financial-institutions
> Updated: 2026-09-24T02:06:55.000Z. Sources: 30. Developments: 2.

Financial institutions linked to Iran are facing increased regulatory restrictions in the Middle East and neighboring regions.

In Turkey, the Banking Regulation and Supervision Agency (BDDK) revoked the operating license of the Istanbul main branch of Bank Mellat. The regulator stated the move was necessary because the bank’s operations posed a risk to the “stability and security of the financial system.” While not explicitly citing sanctions, the bank has faced long-standing restrictions from the United States, the European Union, and the United Kingdom.

Similarly, the Central Bank of the United Arab Emirates has imposed strict enforcement measures against Bank Melli Iran. Under Article 168-1-C of Federal Law No. 6 of 2025, the bank is prohibited from conducting any financial transactions to or from Iran, encompassing both regular fund transfers and trade financing. These regulatory actions follow inspections that revealed violations regarding anti-money laundering, terrorism financing, and proliferation financing requirements. 

This enforcement follows a previous UAE decision in August to suspend all trade and financial transactions with Tehran due to regional tensions. US Treasury Secretary Scott Bessent noted that pressure on Iran is being increased to “unprecedented levels” as the United States seeks the economic isolation of the Islamic Republic through various sanctions and secondary measures.

## Claims

- Bank Melli is prohibited from processing financial transactions to or from Iran within the UAE. (corroborated by 6 sources)
- The ban covers both regular transfers and the financing of trade business. (corroborated by 6 sources)
- Bank Melli is accused of violating laws regarding money laundering, terrorism financing, and proliferation financing. (corroborated by 6 sources)
- US Treasury Secretary Scott Bessent stated that pressure on Iran is being increased to unprecedented levels. (corroborated by 4 sources)
- The sanctions are based on Article 168-1-C of Federal Law No. 6 of 2025. (corroborated by 2 sources)

## Timeline

### 2026-09-24: UAE Central Bank bans Bank Melli Iran from transactions

The UAE Central Bank has banned Bank Melli Iran from conducting financial transactions to or from Iran, citing violations related to money laundering and terrorism financing regulations.

8 sources. https://clstr.news/cluster/uae-central-bank-bans-bank-melli-from-conducting-business

### 2026-09-18: Bank Mellat's Turkish operating license revoked by BDDK

Turkey's banking regulator (BDDK) has revoked the operating license of Iran's Bank Mellat in Istanbul, citing risks to financial stability and depositor rights under national banking law.

22 sources. https://clstr.news/cluster/bank-mellat-loses-operating-license-in-turkey

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Cite as: Sanctions on Iranian financial institutions. CLSTR, https://clstr.news/situations/sanctions-on-iranian-financial-institutions