Türkiye’s Banking Regulation and Supervision Agency revoked the operating license of Iran’s Mellat Bank branch in Istanbul in a decision published in the Official Gazette on Saturday morning.
Legal basis for the decision
The decision was based on a provision of Türkiye’s banking law that allows the license of any bank to be canceled or withdrawn if the continuation of its operations is deemed to pose a risk to depositors’ rights or the security and stability of the financial system.
U.S. sanctions on Turkish institutions
The decision came two weeks after Washington imposed sanctions on Türkiye’s Golden Global Bank over suspected links to Iran’s Revolutionary Guard, as part of U.S. efforts to isolate Tehran economically.
Earlier this month, the U.S. Treasury Department imposed sanctions on a small Turkish investment bank and two of its subsidiaries.
Mahan Air flights suspended
The U.S. Treasury Department said Türkiye and Oman had decided to suspend flights by Iranian airline Mahan Air to the two countries following discussions with them about compliance with U.S. measures imposed on Iran.
