Turkiye revokes operating licence of Iran’s Bank Mellat in Istanbul

Ankara, September 19 — The Turkish government has withdrawn the licence of Iran's Bank Mellat, a semi-private financial institution facing years of Western sanctions, according to the official gazette. The decision, made two weeks after the United States imposed sanctions on a Turkish bank over alleged connections to Iran's Islamic Revolutionary Guard Corps (IRGC), is unclear whether they are related.

The move follows a decision by Turkey's banking regulator overseeing the Tehran-based bank, which supports Iran's government and is subject to US, EU, and UK sanctions, as reported by OpenSanctions, an open-source database of sanctioned entities. Iran also holds the majority stake in the bank, the regulator disclosed. Turkey's regulator cited article 71b of the banking law, stating that Bank Mellat's continued operation threatens depositors, participation fund holders, and the financial system's security and stability.

The bank has been under Western sanctions for years due to allegations that Tehran sought atomic weapons while concealing a civil nuclear program. These sanctions were lifted when Tehran and world powers signed a landmark deal in 2015. However, the United States withdrew from the agreement in May 2018, reinstating stringent economic sanctions on Iran.

Bank Mellat also faced US and Gulf sanctions in 2019 after being listed among 25 entities connected to Iran's Revolutionary Guards. On September 4, the US Treasury Department sanctioned Turkey's Golden Global Bank, alleging ties to the Revolutionary Guards, aiming to intensify financial pressure on Iran. The Turkish investment bank denied the accusations.

Iran has been embroiled in war since late February, when the US and Israel launched a surprise bombing campaign, assassinating the supreme leader of the Islamic republic. US Treasury Secretary Scott Bessent declared an "economic D-Day" on Iran, warning of severe repercussions for countries not joining the campaign. Turkey's regulatory action occurs just days before President Recep Tayyip Erdogan is scheduled to meet with US President Donald Trump at the UN General Assembly, which commences in New York on Tuesday.