Turkey revokes Iran’s Bank Mellat license after more than four decades

ANKARA, Sep 19:  Turkey’s Banking Regulation and Supervision Agency (BDDK) has revoked the operating license of Iranian lender Bank Mellat’s Istanbul branch after more than four decades of operations, according to a notice published in the Official Gazette.

The notice said the license of “Bank Mellat, Head Office in Tehran, Istanbul Turkey Central Branch” had been revoked under the provisions of Turkish banking law.

The law allows authorities to withdraw a bank’s operating license when its continued activities are considered to pose a risk to depositors’ rights or the security and stability of the financial system, Reuters reported.

The notice did not cite US sanctions or identify any specific operational problems at Bank Mellat.

The decision comes amid increased US pressure on countries to tighten economic measures against Iran. Earlier this month, the US Treasury sanctioned Turkish investment bank Golden Global and two of its subsidiaries over alleged links to Iran.

Washington also expanded sanctions targeting Iran’s aviation sector under its campaign against Tehran, while Turkey and Oman later agreed to halt flights by Iranian airline Mahan Air following discussions with the United States over compliance with US measures.

The revocation adds to a series of recent measures affecting Iranian financial and commercial links with countries in the region, although Turkey’s official notice did not directly link the Bank Mellat decision to US pressure.