Bank Mellat loses operating licence for Istanbul branch

Türkiye’s Banking Regulation and Supervision Agency has revoked the operating licence of Iranian lender Bank Mellat’s central branch in Istanbul, according to a decision published in the Official Gazette on Saturday.

Why the licence was revoked

The BDDK said the action was taken under a clause of Türkiye’s banking law concerning risks to depositors’ rights and the security and stability of the financial system. The notice did not provide a more specific explanation for the decision.

Key points

• The decision applies to Bank Mellat’s Istanbul central branch, whose head office is in Tehran.
• The regulator cited a provision allowing a licence to be revoked when continued operation could threaten depositors’ rights or the security and stability of the financial system.
• The Turkish notice did not cite US sanctions or identify specific operational problems.

Bank Mellat’s sanctions history

Bank Mellat has faced Western sanctions for years over accusations that Iran was pursuing a nuclear weapon under the cover of a civil nuclear programme. Those sanctions were lifted under the 2015 nuclear agreement between Tehran and world powers, but the United States withdrew from the agreement in May 2018 and restored economic sanctions on Iran.

The bank was targeted by further US and Gulf sanctions in 2019 after being named among 25 entities linked to Iran’s Islamic Revolutionary Guard Corps. The Turkish regulator’s notice did not refer to those measures. Read the context: US Military Reports Another Fatality as Airstrikes Target Iran’s Revolutionary Guard.

Wider pressure on Iran-linked banking

Earlier this month, the US Treasury Department sanctioned Golden Global Yatirim Bankasi Anonim Sirketi, a Turkish investment bank, and two subsidiaries over alleged ties to Iran. The Treasury accused the bank of facilitating tens of millions of dollars in transactions for the Islamic Revolutionary Guard Corps-Qods Force and helping the Iranian government move funds internationally. Golden Global Bank denied the accusations.