UAE Central Bank bars Bank Melli Iran branches from transactions with Iran

The Central Bank of the UAE has prohibited all Bank Melli Iran branches operating in the country from conducting financial transactions to and from Iran. The restriction covers trade finance and fund transfers, according to a statement issued by the regulator on 23 September.

The central bank said it imposed the measures following regulatory examinations that found violations of UAE laws, regulations and supervisory decisions. These included obligations under legislation addressing money laundering, terrorism financing and proliferation financing.

The regulator cited Article 168(1)(C) of Federal Decree-Law No. 6 of 2025, which governs the central bank, financial institutions and insurance business. It said the decision was made under powers granted to the central bank governor by applicable laws and regulations.

The restriction applies to transactions involving Iran by every Bank Melli Iran branch operating in the UAE. The central bank’s announcement did not specify a duration for the measure or give details about services and transactions unrelated to Iran.

The central bank said it would continue strengthening supervision and taking steps to protect the soundness and integrity of the UAE financial system. It also reiterated its expectation that supervised financial institutions meet applicable compliance standards.