The UAE Central Bank has imposed strict enforcement measures on Bank Melli Iran’s branches operating in the UAE, prohibiting them from conducting financial transactions to and from Iran, including trade finance and fund transfers.
The decision follows regulatory examinations that identified non-compliance with UAE laws, regulations and supervisory requirements. According to the Central Bank, the violations involved obligations related to anti-money laundering, countering terrorist financing and preventing proliferation financing.
The measures were imposed under Article 168-1-C of Federal Decree-Law No. 6 of 2025, which governs the Central Bank, financial institutions and related activities in the UAE. The regulator said the action was taken within the powers granted to the Central Bank Governor under applicable laws and regulations.
The move means Bank Melli branches in the UAE can no longer process financial transactions involving Iran, including transfers of funds and trade-financing operations. The restriction follows the UAE’s broader financial measures concerning transactions with Iran announced in August.
The Central Bank said the enforcement action forms part of its ongoing efforts to strengthen supervision of financial institutions and protect the soundness and integrity of the UAE’s financial system.
Bank Melli has operated in the UAE for decades and has maintained several branches in the country. The latest decision places its UAE operations under significant restrictions while reinforcing the UAE’s regulatory requirements for financial institutions operating within its jurisdiction.
The action also highlights the UAE’s continued focus on strengthening financial compliance and aligning its banking sector with international standards for combating illicit financial activity.
