UAE Central Bank Halts Emirates Branches of Mellat Bank Iran from Financial Transactions with Iran

The United Arab Emirates Central Bank announced strict enforcement measures against branches of "Mellat Bank Iran" operating in the UAE under Article (168-1-j) of Federal Decree-Law No. (6) of 2025 concerning the Central Bank, financial institutions, and insurance activities.

This follows violations related to non-compliance with systems, legislation, and regulatory decisions in force in the UAE, including requirements and obligations mandated by laws related to combating money laundering, terrorism financing, and proliferation of weapons of mass destruction, according to the Emirates News Agency (WAM).

Based on inspection results and pursuant to the powers granted to the Governor of the UAE Central Bank under applicable laws and regulations, it was decided to prohibit all branches of Mellat Bank Iran operating in the country from conducting any financial transactions with Iran, including trade financing and money transfers.

The Central Bank continues to strengthen its regulatory framework and take necessary actions to safeguard the integrity and transparency of the UAE's financial system and ensure that financial institutions and regulated entities comply with the highest standards of compliance, in line with international best practices and standards.