UAE bans financial transactions of Bank Melli Iran branches with Iran

The Central Bank of the United Arab Emirates announced on Wednesday the imposition of strict enforcement measures against branches of Bank Melli Iran operating in the country, including a ban on conducting any financial transactions with or from Iran, covering trade financing and financial transfers.

The Emirates News Agency (WAM) quoted the Central Bank as stating that these measures were taken pursuant to Article 168-1-(c) of Federal Decree-Law No. (6) of 2025 concerning the Central Bank and the Regulation of Financial Institutions, Activities, and Insurance Operations.

The bank clarified that the measures resulted from violations related to non-compliance with applicable regulations, legislation, and supervisory decisions in the United Arab Emirates, including requirements and obligations mandated under relevant laws combating money laundering, terrorist financing, and the financing of weapons proliferation.

The Central Bank further explained that, based on inspection findings and in accordance with the powers delegated to the Governor of the Central Bank of the UAE under prevailing laws and regulations, it has decided to prohibit all branches of Bank Melli Iran operating in the country from engaging in any financial transactions with or from Iran, including trade financing and financial transfers.

The bank affirmed its continued efforts to strengthen its supervisory framework and take necessary measures to safeguard the integrity and stability of the UAE’s financial system, ensuring that financial institutions and entities under its supervision adhere to the highest compliance standards, in line with relevant international best practices and standards.