Turkiye Revokes Operating Licence of Iran’s Bank Mellat Branch in Istanbul Amid Financial Security Concerns

A man uses an automated teller machine (ATM) from Bank Mellat in Tehran on September 7, 2026 [AFP]. Turkiye’s banking watchdog has officially revoked the operating licence of the Iranian lender Bank Mellat and its branch located in the Turkish city of Istanbul.

According to the decision by the Banking Regulation and Supervision Agency (BDDK), published in the Official Gazette on Saturday, the ruling applies to the Bank Mellat Head Office in Tehran and the Istanbul Turkey Central Branch. The regulator stated that the measure was implemented under a specific clause of Turkiye’s banking law, which permits the revocation or withdrawal of a bank's licence if its continued operations are determined to present a risk to depositors’ rights or threaten the security and stability of the financial system.

Bank Mellat has faced Western sanctions for years following allegations that Tehran was pursuing a nuclear weapon under the guise of a civil nuclear programme. Although those sanctions were lifted under the landmark 2015 agreement between Tehran and world powers aimed at curbing Iran’s nuclear ambitions, the United States unilaterally withdrew from the accord in May 2018, thereby reimposing economic sanctions on the nation.

Furthermore, Bank Mellat encountered additional US and Gulf sanctions in 2019 after being identified as one of 25 entities connected to Iran’s Islamic Revolutionary Guard Corps (IRGC). However, the recent Turkish notice omitted any mention of US measures or specific operational difficulties.

Earlier this month, the US Treasury Department imposed sanctions on a small Turkish investment bank and two subsidiaries over suspected ties to Iran. The Treasury Department accused Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) of facilitating tens of millions of dollars' worth of transactions for the Islamic Revolutionary Guard Corps-Qods Force and granting the Iranian government banking access to transfer funds internationally. Golden Global Bank has strongly denied these allegations.