UAE bans Iran’s Bank Melli from operating

Business Recorder reported from Abu Dhabi that the UAE central bank has ordered Iran’s Bank Melli to halt its activities in the Emirates. The regulator attributed the move to breaches of regulatory requirements, and its seven UAE branches are now blocked from handling any money movements linked to Iran, covering trade finance and fund transfers.

The central bank pointed to rule violations involving laws against money laundering, terror funding and proliferation financing. The step follows the Emirates’ August decision to halt commerce, business exchanges and money dealings with Iran until further notice, a sign of strained ties since the US war against Iran started in February. Iran has also struck neighbouring states aligned with Washington, including the UAE, since the conflict began.

Whether the step signals wider tightening after US sanctions remained unclear at publication. In late August, the US Treasury’s Office of Foreign Assets Control sanctioned the manager of Bank Melli’s UAE branch and a Hong Kong entity accused of assisting money laundering for a blacklisted Iranian currency dealer. Bank Melli has operated in the UAE since 1969 with its main office in Dubai, and neither it nor the US Treasury had responded to requests for comment.