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The Central Bank of the UAE imposed the measures under Article 168-1-C of Federal Decree-Law No. 6 of 2025 on the regulation of financial institutions and insurance business. Examinations conducted by the regulator identified non-compliance with UAE laws and supervisory decisions, including obligations to combat money laundering, terrorism financing and proliferation financing. The Central Bank exercised powers granted to its Governor to enact the prohibition on the Iranian lender’s local branches.
All branches of Bank Melli Iran operating in the UAE must now halt financial transactions linked to Iran, the Central Bank said in its statement. The restriction covers trade finance activities and fund transfers that previously formed core elements of the bank’s cross-border operations. The announcement was distributed by the Emirates News Agency on September 23.
Bank Melli Iran began operating in the UAE in 1969 and maintains seven branches across various emirates with its main office in Dubai, according to the lender’s website. The bank has functioned as a longstanding financial link for Iranian entities despite layers of international sanctions that have immobilised many related deposits in Dubai institutions. United States authorities sanctioned the manager of the bank’s Dubai branch in August as part of efforts targeting networks linked to the Islamic Revolutionary Guard Corps.
The Central Bank of the UAE continues to refine its supervisory framework to preserve the integrity of the national financial system. Its statement stressed the importance of adherence to the highest compliance standards in line with international best practices. The action forms part of a pattern of enforcement against foreign bank branches found in breach of regulatory requirements.
The UAE suspended all trade, commercial exchanges and financial transactions with Iran in August following reported attacks on neighbouring countries and vessels. This broader policy has amplified compliance demands on institutions with Iranian exposure throughout the Gulf. Reuters reported that the latest prohibition on Bank Melli Iran aligns with that tightened stance while addressing specific violations uncovered through regulatory reviews.
Earlier Central Bank actions have included financial penalties on multiple foreign bank branches for shortcomings in market conduct, consumer protection and anti-money laundering controls. Cumulative sanctions since 2025 have totalled millions of dirhams across several institutions, according to Central Bank disclosures on prior cases. The prohibition imposed on Bank Melli Iran stands as one of the more restrictive responses applied to date.
