Türkiye revokes Bank Mellat’s operating licence in Istanbul

Saturday 19 - 15:45

By: Azzat Manal

Türkiye revokes Bank Mellat’s operating licence in Istanbul

Türkiye has revoked the operating licence of Bank Mellat’s Istanbul branch, in a decision announced by the country’s Banking Regulation and Supervision Agency (BDDK) and published in the Official Gazette on September 19.

The decision, adopted by the BDDK board on September 18, concerns the Istanbul central branch of Bank Mellat, an Iranian lender headquartered in Tehran. The regulator cited Article 71(1)(b) of Türkiye’s Banking Law, which provides for the withdrawal of a bank’s operating licence when its continued activities are deemed to threaten depositors’ rights or the confidence and stability of the financial system.

The official notice did not directly refer to US sanctions or identify specific operational problems at Bank Mellat. The move nevertheless comes at a time when Washington is intensifying economic pressure on Iran and urging other countries and financial institutions to restrict activities linked to Tehran.

Bank Mellat has operated in Türkiye for decades and has been involved in financial services supporting trade and economic activity between Türkiye and Iran. The lender began its Turkish operations through its Istanbul branch in 1982 and subsequently expanded its presence to Ankara and İzmir.

The Iranian bank has also faced Western sanctions over the years. US measures against Bank Mellat have been linked to allegations concerning Iran’s nuclear programme and, later, alleged connections involving Iran’s Islamic Revolutionary Guard Corps. The bank’s sanctions history has complicated its access to international financial markets and cross-border transactions.

The Turkish decision follows other recent measures affecting financial and commercial links with Iran. Earlier in September, the US Treasury imposed sanctions on a Turkish investment bank and two subsidiaries, alleging that the institutions had facilitated transactions connected to Iran’s Islamic Revolutionary Guard Corps-Qods Force. The Turkish institution has rejected the allegations.

Washington has also increased pressure on Iran’s aviation sector. The US Treasury said Türkiye and Oman had agreed to halt flights by Iranian carrier Mahan Air following discussions concerning compliance with US measures against Iran. The developments form part of a broader effort by Washington to restrict Iran’s access to international financial and commercial networks.

For Türkiye, the Bank Mellat decision comes as authorities continue to exercise regulatory oversight over the country’s banking sector while maintaining economic and commercial relations with Iran. The official justification for the licence withdrawal remains the provisions of Turkish banking law concerning depositor protection and financial-system stability, rather than an explicit reference to US sanctions.

The move is therefore likely to attract attention because of its timing and its potential implications for financial transactions between Türkiye and Iran. Bank Mellat has historically served as an intermediary for commercial relations between the two neighbouring countries, making the loss of its Turkish operating licence a significant development for businesses and institutions that relied on its services.