Turkey Revokes License of Iran’s Bank Mellat Branch in Istanbul Amid Pressure on Tehran
Turkey’s Banking Regulation and Supervision Agency (BDDK) has revoked the operating license of Iran’s Bank Mellat branch in Istanbul under a decision published in the country’s Official Gazette, amid mounting international and U.S. pressure on financial institutions linked to Iran.
Bank Mellat is headquartered in Tehran, while the Turkish decision did not provide a detailed explanation of the specific reasons behind the withdrawal of the Istanbul branch’s license.
The decision cited a provision of Turkey’s banking law that allows authorities to revoke or withdraw a banking license when an institution’s continued operations are deemed to pose risks to depositors’ rights or the security and stability of the financial system.
The official notice did not directly link the license revocation to U.S. sanctions against Iran, nor did it refer to any specific operational issues at the bank. As a result, the legal grounds cited in the decision remain the only officially stated basis for the move.
The development comes as Iranian financial institutions face growing pressure from U.S. sanctions aimed at restricting Tehran’s access to the international financial system and limiting its economic channels abroad.
Earlier this month, the U.S. Treasury Department imposed sanctions on a small Turkish investment bank and two of its subsidiaries as part of measures Washington said were targeting financial networks linked to Iran.
The Treasury Department also announced that Turkey and Oman had suspended flights operated by Iranian airline Mahan Air to their territories following discussions over U.S. measures concerning Iran.
Bank Mellat is among Iran’s major financial institutions with an international presence, and its Istanbul branch operated within Turkey’s banking sector before its license was revoked.
The decision highlights the challenges facing Iranian banking operations in Turkey amid the complex economic ties between the two countries and growing international scrutiny of institutions conducting business with Tehran. However, there is no direct indication in the published decision that the move was made in response to a U.S. request
