Abu Dhabi – The Central Bank of the United Arab Emirates issued a decision prohibiting branches of “Bank Melli Iran” operating in the country from conducting any financial transactions to and from Iran, including trade financing and money transfers. This decision came in the wake of field inspections that revealed that the bank had committed clear violations of the regulations, legislation and supervisory decisions in force in the country.
The Central Bank explained that enforcement measures were taken based on Article (168-1-C) of Federal Decree Law No. (6) of 2025 regarding the Central Bank and the regulation of financial establishments, activities, and insurance businesses. He pointed out that the observed violations relate to non-compliance with the requirements contained in legislation related to combating money laundering, financing armed groups, and financing the spread of armaments.
The Central Bank affirmed its commitment to continuing strict supervision over all financial institutions subject to its supervision, and to taking the necessary measures to protect the safety and integrity of the UAE financial system, and to ensure its full compliance with the approved regulatory standards. In this context, the current decision is limited to prohibiting transactions with Iran, without including any announcement regarding the closure of bank branches in the country.
This measure comes within the framework of the UAE’s efforts to tighten control over financial transactions related to Iran. August 19 witnessed the UAE Ministry of Foreign Affairs announcing the cessation of commercial activities, exchanges, and financial transactions with Iran until further notice, while the new decision specifically targets the branches of “Bank Melli Iran” against the backdrop of violations caught by the Central Bank during inspections.
