Turkey shuts down Iranian Bank Mellat operations in Istanbul

Turkish regulators terminated Bank Mellat's licence to operate in the country's largest financial hub, according to official announcements. The move comes as part of broader compliance measures with international sanctions frameworks targeting Iranian financial entities.

Bank Mellat has faced sustained Western sanctions restrictions for over a decade, with Western governments alleging the lender provides financial support to Iran's nuclear activities. The bank has consistently denied these claims, though it has remained subject to asset freezes and transaction restrictions in numerous jurisdictions.

The closure of the Istanbul branch represents a significant reduction in Bank Mellat's international presence. The Iranian state-owned institution had maintained operations across multiple countries despite the sanctions regime, though its ability to conduct cross-border transactions has been severely constrained.

Turkey has increasingly aligned its financial oversight with international sanctions protocols in recent years, particularly regarding Iranian institutions. The decision underscores the widening isolation of Iranian banks in the global financial system, limiting Tehran's access to international markets and complicating the country's trade relationships.