Turkey revokes Iran’s Bank Mellat licence

Ankara has removed the licence of Iran's Bank Mellat, a financial institution subject to Western sanctions, following a decision by the Turkish banking regulator, according to the official gazette. The move came two weeks after the US imposed sanctions on a Turkish bank allegedly linked to Iran's Islamic Revolutionary Guard Corps (IRGC), though a direct connection between the two actions is unclear.

Bank Mellat, based in Tehran and a major shareholder of the Iranian government, has been under US, EU, and UK sanctions. The Turkish regulator cited article 71b of the banking law, stating that the bank's continued operation threatens depositors' rights, fund holders, and the financial system's security and stability. Iran and Western nations have been at odds over Iran's nuclear program since the 2015 deal, which lifted sanctions in exchange for curbing Tehran's nuclear ambitions.

However, the US withdrew from the deal in 2018, reimposing harsh economic sanctions on Iran. Bank Mellat was also targeted by US and Gulf sanctions in 2019 for alleged ties to Iran's Revolutionary Guard Corps. The Turkish investment bank denied these allegations.