Turkey: Turkey has revoked the operating license granted to the Istanbul branch of Iran’s Bank Mellat. The move, announced via a decision published in the Turkish Official Gazette, comes amidst mounting international and US pressure on financial institutions linked to Iran.
According to National Iraqi News Agency, the Banking Regulation and Supervision Agency (BRSA) of Turkey issued the decision to revoke the license of the Bank Mellat branch-headquartered in Tehran-without providing a detailed explanation in the official notice regarding the specific reason for the cancellation.
The decision cited a provision in Turkish banking law that allows for the withdrawal or revocation of a banking institution’s license if its continued operations are deemed a risk to depositors’ rights or to the security and stability of the financial system.
The Turkish decision made no direct reference to US sanctions on Iran or to any specific operational issues within Bank Mellat; consequently, linking the decision to US pressure on Tehran remains a matter distinct from the legal grounds stated in the decision itself.
This move comes as Iranian financial institutions face increasing pressure due to US sanctions, part of Washington’s efforts to limit Tehran’s access to the international financial system and curtail economic channels linked to it. Earlier this month, the U.S. Treasury Department imposed sanctions on a small Turkish investment bank and two of its subsidiaries-a move Washington described as part of measures targeting financial networks linked to Iran.
The U.S. Treasury also announced that Turkey and Oman had decided to halt flights by the Iranian carrier Mahan Air to their territories, following discussions with both nations regarding compliance with U.S. measures concerning Iran.
Bank Mellat is one of the Iranian banking institutions with an international presence; its Istanbul branch had been operating within the Turkish banking system prior to the recent decision to revoke its license.
This Turkish decision comes at a sensitive time for economic relations between Turkey and Iran, particularly given the interplay between the two countries’ commercial interests and the U.S. pressures and sanctions imposed on Tehran.
However, the decision published in the Official Gazette makes no direct reference to the license revocation being a response to U.S. sanctions or requests; thus, the officially stated reason remains the legal basis cited by the Turkish Banking Regulation and Supervision Agency (BRSA) for its decision.
The move raises questions about the future of Iranian banking operations in Turkey, especially if international pressure persists on institutions perceived as linked to the Iranian economy or capable of providing financial channels for Tehran.
This step also coincides with the United States intensifying measures against institutions and companies Washington believes are helping Iran circumvent sanctions, thereby subjecting banks and financial institutions in countries dealing with Tehran to mounting pressure regarding financial compliance.
Consequently, the revocation of the license for the Istanbul branch of Iran’s Bank Mellat marks a new development regarding Iranian banking operations in Turkey-occurring amidst escalating international measures linked to sanctions against Tehran-while the published decision by Turkish authorities offered no further explanation beyond the legal grounds concerning the protection of depositors’ rights and the stability of the financial system.