In a significant regulatory move, Turkiye’s Banking Regulation and Supervision Agency (BDDK) has revoked the operating license of Bank Mellat, the Iranian lender’s branch in Istanbul. This decision highlights the complex interplay of banking regulations and international sanctions that have long affected Iran’s financial institutions. Bank Mellat’s challenges reflect not only the broader geopolitical landscape but also the ongoing impact of sanctions that continue to influence not just financial operations but also regional stability.
In Turkiye, the banking watchdog has officially revoked the operating license of the Iranian lender Bank Mellat, located in Istanbul. This decision, published in the Official Gazette on September 19, 2026, comes as part of Turkiye’s regulatory efforts to ensure the stability and security of its financial system. The Banking Regulation and Supervision Agency (BDDK) indicated that the revocation was in accordance with a provision of Turkiye’s banking law, permitting such action if a bank’s continued operation could pose risks to depositors or the overall financial infrastructure.
Bank Mellat has faced a challenging landscape marked by years of Western sanctions, primarily due to allegations concerning its ties to Tehran’s nuclear pursuits. Although these sanctions were partially lifted following the 2015 nuclear agreement between Iran and world powers, the U.S. withdrawal from the accord in May 2018 reinstated a wave of economic restrictions. In 2019, Bank Mellat was further sanctioned by the U.S. and Gulf states after being identified as one of several entities connected to the Islamic Revolutionary Guard Corps (IRGC).
Interestingly, the BDDK notice did not reference the recent U.S. sanctions when detailing the operational issues leading to the revocation. Earlier this month, the U.S. Treasury Department targeted a small Turkish investment bank and its subsidiaries for alleged financial ties to Iran, specifically accusing Golden Global Yatirim Bankasi Anonim Sirketi of facilitating large transactions for the IRGC-Qods Force and enabling the Iranian government to move funds internationally. Golden Global Bank has denied these accusations.
The revocation of Bank Mellat’s license in Turkiye not only underscores the complexities of navigating international finance under sanctions but also reflects the wider implications for the Iranian banking system and the region’s economic stability. As the financial landscape continues to evolve, the balance of regulatory practices and international diplomacy will remain critical to fostering a secure banking environment.
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