Central Bank of UAE Imposes Comprehensive Sanctions on Bank Melli Iran Branches

The Central Bank of the UAE has implemented strict enforcement measures against Bank Melli Iran's local operations, restricting their ability to conduct cross-border financial transactions.

The Central Bank of the UAE has announced the implementation of stringent enforcement measures targeting the branches of Bank Melli Iran operating within the Emirates, following a comprehensive examination of their regulatory compliance. The action, undertaken pursuant to Article 168-1-C of Federal Decree-Law No. 6 of 2025 concerning the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business, addresses serious breaches of national supervisory requirements.

The violations identified centre upon non-compliance with established regulations, domestic legislation, and Central Bank supervisory directives. Of particular concern are failures to adhere to the stringent requirements governing the prevention of money laundering, the financing of terrorism, and proliferation financing—matters of paramount importance to the financial integrity of the nation.

Following a thorough examination of the institution’s operations and exercising the statutory authority vested in the Governor of the Central Bank of the UAE, a decisive prohibition has been enacted. All branches of Bank Melli Iran operating throughout the UAE are now prohibited from conducting any financial transactions directed to or originating from Iran. This comprehensive restriction encompasses trade finance operations and fund transfers of all descriptions.

The Central Bank reaffirmed its unwavering commitment to the continuous enhancement of its supervisory framework and the implementation of necessary corrective measures to preserve the robustness and integrity of the UAE’s financial system. The institution emphasised that all financial entities and organisations falling within its purview must demonstrate compliance with the highest standards of regulatory adherence, in consonance with internationally recognised best practices and established standards.

This enforcement action underscores the Central Bank’s resolute dedication to maintaining a financially secure environment that protects the stability of the national economy and upholds the UAE’s reputation as a jurisdiction of choice for legitimate international finance.

Source: WAM