**Title: Turkiye Revokes Operating Licence of Iran’s Bank Mellat in Istanbul**
On September 19, 2026, Turkiye's Banking Regulation and Supervision Agency (BDDK) announced the revocation of the operating licence for the Istanbul branch of Bank Mellat, an Iranian financial institution. This decision was published in the Official Gazette and marks a significant regulatory action against the bank.
The BDDK's decision cited concerns that Bank Mellat's continued operation could pose risks to the rights of depositors and the overall security and stability of Turkiye's financial system. The regulatory body invoked a specific clause in Turkiye's banking law that allows for the withdrawal of a bank's licence under such circumstances.
Bank Mellat has faced scrutiny and sanctions from Western nations for several years. These sanctions stem from allegations that Iran was pursuing nuclear weapons under the guise of a civil nuclear program. Although these sanctions were partially lifted following the 2015 nuclear agreement between Iran and world powers, the United States' withdrawal from the agreement in May 2018 led to the re-imposition of economic sanctions against Iran.
In 2019, Bank Mellat was further impacted by additional sanctions from the U.S. and Gulf nations after being identified as one of 25 entities linked to Iran's Islamic Revolutionary Guard Corps (IRGC). This designation has contributed to the bank's ongoing challenges in maintaining its operations abroad.
While the Turkish notice did not directly reference U.S. sanctions or detail specific operational issues, the timing of the revocation coincides with a broader context of financial scrutiny regarding Iranian entities. Earlier this month, the U.S. Treasury Department imposed sanctions on a Turkish investment bank and its subsidiaries, alleging their involvement in facilitating substantial financial transactions for the IRGC-Qods Force, a branch of the IRGC. The implicated bank, Golden Global Yatirim Bankasi Anonim Sirketi, has denied these allegations.
The revocation of Bank Mellat's licence in Istanbul underscores the ongoing tensions surrounding Iran's financial operations abroad, particularly in the context of international sanctions and regulatory oversight. As Turkiye navigates its own financial regulatory landscape, the implications of this decision may resonate across the region, particularly for other Iranian financial institutions operating within its borders.
The BDDK's action reflects a cautious approach to maintaining the integrity of Turkiye's banking system amidst complex geopolitical dynamics.