Central Bank imposes strict sanctions on branches of Bank Melli Iran operating in UAE
Action follows violations related to regulatory compliance and anti-money laundering requirements, the Central Bank says
Abu Dhabi: The Central Bank of the UAE (CBUAE) has imposed enforcement measures on the UAE branches of Bank Melli Iran, including a ban on conducting any financial transactions to and from Iran.
The measures were taken under Article 168(1)(C) of Federal Decree-Law No. 6 of 2025 concerning the Central Bank, the regulation of financial institutions and activities, and insurance business.
According to the CBUAE, the action follows violations related to non-compliance with regulations, laws and supervisory decisions in force in the UAE, including obligations linked to combating money laundering, terrorist financing and the financing of proliferation activities.
Based on the findings of regulatory examinations, the Central Bank said it had decided to prohibit all branches of Bank Melli Iran operating in the UAE from carrying out any financial transactions involving Iran, including trade finance activities and fund transfers.
The CBUAE said the decision was taken in accordance with the powers granted to the Governor of the Central Bank under applicable laws and regulations.
The Central Bank reaffirmed its commitment to strengthening its supervisory framework and taking the necessary measures to safeguard the soundness and integrity of the UAE's financial system.
It added that it would continue to ensure that financial institutions and entities operating under its supervision comply with the highest standards of regulatory compliance, in line with relevant international best practices and standards.