UAE Central Bank sanctions Bank Melli Iran over compliance violations

Branches barred from financial transactions with Iran following regulatory examinations

The Central Bank of the UAE has imposed enforcement measures on branches of Bank Melli Iran operating in the UAE over compliance violations.

The measures were imposed under Article 168-1-C of Federal Decree-Law No. 6 of 2025 regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business.

The Central Bank said the violations involved non-compliance with UAE regulations, laws and supervisory decisions, including requirements related to combating money laundering, terrorism financing and proliferation financing.

Following regulatory examinations, the Central Bank prohibited all Bank Melli Iran branches in the UAE from conducting financial transactions to and from Iran, including trade finance and fund transfers.

The regulator said the action was taken under powers granted to the Governor of the Central Bank under applicable laws and regulations.

The Central Bank said it continues to strengthen supervision of financial institutions to safeguard the soundness and integrity of the UAE financial system and ensure compliance with regulatory standards.

Source Gulf News