CBUAE Imposes Transaction Restrictions on Bank Melli Iran

The UAE Central Bank has barred all Bank Melli Iran branches operating in the country from carrying out financial transactions to or from Iran, including trade finance activities and fund transfers.

The Central Bank of the UAE said it had introduced “strict enforcement measures” against the Iranian bank’s UAE branches following regulatory examinations.

According to the central bank, the action followed violations involving non-compliance with applicable UAE regulations, laws and supervisory decisions.

The breaches included requirements and obligations under legislation covering anti-money laundering, countering the financing of terrorism and combating proliferation financing.

The restrictions followed the findings of regulatory examinations conducted by the UAE Central Bank. As part of the measures, all Bank Melli Iran branches in the UAE have been prohibited from conducting financial transactions to and from Iran.

The prohibition specifically covers trade finance and fund transfer activities, the central bank said.
The measures were taken under Article 168-1-C of Federal Decree-Law No. 6 of 2025 concerning the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business.

The decision was also issued under the authority granted to the Governor of the Central Bank of the UAE under applicable laws and regulations.

The CBUAE said it would continue strengthening its supervisory framework and taking measures to protect the stability and integrity of the UAE’s financial system. It added that financial institutions and entities under its supervision are expected to meet high compliance standards in line with relevant international best practices and standards.