Türkiye revokes license of Iran’s Bank Mellat

ANKARA

Türkiye has revoked the license of Iran’s Bank Mellat, a semi-private financial entity that has been subject to Western sanctions for years, the Official Gazette said early on Sept. 19.

The decision was announced some two weeks after Washington slapped sanctions on a Turkish bank over alleged ties to Iran’s Islamic Revolutionary Guard Corps (IRGC) although it was not immediately clear whether the two issues were related.

The move follows a decision by Türkiye’s banking regulator over the Tehran-based bank, which provides financial support to Iran’s government and is subject to U.S., EU and U.K. sanctions, according to
OpenSanctions, an open-source database of information on sanctions-hit entities.

The Iranian government is also the largest shareholder of the bank, it said.

In revoking Bank Mellat’s license, the Turkish regulator cited article 71b of the banking law, which says the entity’s “continued operation poses a threat to the rights of depositors and participation fund holders and to the security and stability of the financial system.”

Bank Mellat has been subjected to Western sanctions for years over accusations that Tehran was pursuing an atomic weapon under the cover of a civil nuclear program.

On Sept. 4, the U.S. Treasury Department imposed sanctions on Türkiye’s Golden Global Bank over its alleged ties to the Revolutionary Guards as it sought to step up financial pressure on Iran.

The Turkish investment bank denied the accusations.

A few days later, Washington imposed sanctions on 36 entities, including three Turkish ground services companies, for helping Iran’s Mahan Air, a civilian carrier accused of supporting the Revolutionary Guards.

Following the move, Mahan Air said this week it would suspend all flights to Türkiye from Sept. 21 at the request of Turkish aviation authorities, Iran’s ISNA news agency reported.

Iran has been at war since late February, when the United States and Israel launched a surprise bombing campaign that killed the Islamic republic’s supreme leader.

U.S. Treasury Secretary Scott Bessent has said Washington was declaring an “economic D-Day” on Iran, warning of harsh consequences for countries that do not join the campaign.