Please follow us on Truth Social, X, YouTube, Minds, Telegram, Rumble, GETTR, Gab, Instagram
In the early hours of Saturday morning Turkey's banking regulator took another step in restricting Iran's access to global banking by revoking the operating license of the Istanbul branch of Bank Mellat, one of the country's largest banks and one of Iran's most strategically connected financial institutions.
Turkey's Banking Regulation and Supervision Agency (BDDK) announced in the country's official gazette that it has revoked the operating license of the Istanbul branch of Iranian Bank Mellat, citing Article 71b of Turkey's banking law. According to this provision, the authority can withdraw the license of banks if their operation poses a threat to the rights of depositors or the security and stability of the financial system.
Bank Mellat is one of Iran's largest banks and has for years been a subject of Western sanctions. Among the allegations leveled against the bank, it has been accused of directly funding the Iranian government as well as providing a financial vehicle to move money internationally. The Iranian government is the bank's largest shareholder. The U.S., EU, and UK have each placed the bank under sanctions. In 2019, Bank Mellat was among 25 entities linked to the IRGC sanctioned by the U.S. Department of the Treasury.
The move comes approximately two weeks after the U.S. Treasury Department sanctioned Golden Global Bank, a Turkish investment lender, over allegations it conducted tens of millions of dollars in transactions on behalf of the IRGC's Quds Force and facilitated Iran's government in routing funds internationally. Golden Global has denied the allegations.
Turkey's regulatory action arrives ahead of a high-stakes meeting between Turkish President Recep Tayyip Erdogan and President Trump on the sidelines of the United Nations General Assembly in New York this week. Treasury Secretary Scott Bessent has declared an "economic D-Day" on Iran, warning nations that continue to do business with Tehran of severe financial consequences.
Bank Mellat was first blacklisted under U.S. and EU sanctions during the George W. Bush era. Those sanctions were lifted when Iran agreed to curb its nuclear activities under the 2015 Joint Comprehensive Plan of Action. All were re-imposed by Trump when he unilaterally withdrew from the Iran nuclear deal in 2018.
The closure of Bank Mellat's Istanbul branch is a significant tactical victory for the U.S. in its economic pressure campaign against Tehran. For Ankara, the move represents a careful hedge — demonstrating compliance with Washington's economic warfare on Iran while preserving diplomatic room ahead of the UNGA summit with Trump.
