Turkey revokes license of Iranian bank’s Istanbul brach, citing law on protecting financial stability

Turkey’s BDDK banking watchdog revokes the operating license of Iranian lender Bank Mellat’s branch in Istanbul, according to a notice published in the Official Gazette, as the US presses other countries to increase economic pressure on Tehran.

“It has been decided to revoke the operating license of Bank Mellat, Head Office in Tehran, Istanbul Turkey Central Branch,” the notice says, without citing the US measures or any operational issues.

It cites article 71b of the banking law, which says the entity’s “continued operation poses a threat to the rights of depositors and participation fund holders and to the security and stability of the financial system.”

The Tehran-based bank provides financial support to Iran’s government and is subject to US, EU and UK sanctions, according to OpenSanctions, an open-source database of information on sanctions-hit entities, which also identifies the Iranian government as the bank’s largest shareholder.

Earlier this month, the US Treasury Department imposed sanctions on a small Turkish investment bank and two subsidiaries for allegedly facilitating trade between China and the elite Quds Force of Iran’s Islamic Revolutionary Guard Corps.

The Treasury also said Turkey and Oman had decided to stop flights by Iranian airline Mahan Air to their countries as a result of discussions held with both countries on complying with US measures against Iran.