UAE Central Bank restricts Bank Melli Iran branches over compliance breaches
The Central Bank of the UAE has imposed sanctions on Bank Melli Iran’s UAE branches, prohibiting transactions with Iran after examinations identified breaches of financial crime and other regulatory requirements.
ABU DHABI, September 23, 2026 — The Central Bank of the UAE has imposed enforcement measures on branches of Bank Melli Iran operating in the country following regulatory examinations that identified noncompliance with UAE laws, regulations and supervisory decisions.
The measures prohibit all of Bank Melli Iran’s UAE branches from conducting financial transactions to or from Iran, including trade finance and fund transfers. The central bank said the violations included requirements under legislation covering anti-money laundering, counterterrorism financing and proliferation financing.
The action was taken under Article 168-1-C of Federal Decree-Law No. 6 of 2025 governing the central bank, financial institutions, financial activities and insurance. The regulator did not specify individual transactions involved, disclose the number of affected branches or announce a monetary penalty in its statement.
The measure comes amid broader international scrutiny of Bank Melli Iran. On Aug. 28, the U.S. Treasury Department sanctioned Reza Mohammad Taeedi, whom it identified as the manager of Bank Melli’s Dubai branch, as part of U.S. measures targeting Iran’s access to the UAE financial system.
Bank Melli Iran itself remains on the U.S. Treasury’s Specially Designated Nationals list and is identified by the Office of Foreign Assets Control as subject to secondary sanctions.
The UAE central bank said it would continue strengthening supervision to protect the soundness and integrity of the country’s financial system and ensure compliance with international standards.
Regulatory Actions
Structured data extracted from official sources and validated by sanctions experts