UAE bars Bank Melli Iran branches from financial transactions with Iran

The Central Bank of the United Arab Emirates has barred all branches of Bank Melli Iran operating in the country from conducting financial transactions to and from Iran, including trade finance and fund transfers.

The central bank said on Wednesday that it had imposed “strict enforcement measures” following supervisory examinations that identified violations of UAE regulations, laws and supervisory decisions. The measures were taken under Article 168(1)(C) of Federal Decree-Law No. 6 of 2025 governing the central bank, financial institutions and insurance activities.

The regulator said the violations included failures to comply with requirements related to combating money laundering, terrorist financing and proliferation financing.

The decision applies to all Bank Melli Iran branches operating in the UAE and prevents them from carrying out financial transactions involving Iran, including trade-finance operations and transfers of funds. The central bank said the action followed the findings of its examinations and was taken under powers granted to its governor under UAE law.

The UAE central bank said it would continue strengthening its supervisory framework to protect the integrity of the country's financial system and ensure that institutions under its oversight meet regulatory and international compliance standards.

The move comes as financial and trade restrictions involving Iran have intensified. Reuters reported that the UAE had already suspended trade and financial ties with Iran in August, while the latest action specifically targets the UAE operations of Bank Melli Iran.

Bank Melli Iran is Iran's largest bank and operates multiple branches in the UAE, according to The National. The latest decision restricts their transactions with Iran but does not, in the central bank's published statement, announce the closure of the branches themselves.