The Turkey Bank Mellat license has been revoked, ending the operating authorization of the Iranian lender’s Istanbul branch.
Turkey’s Banking Regulation and Supervision Agency, known as BDDK, made the decision on September 18. The decision appeared in Turkey’s Official Gazette on Saturday. BDDK’s own records also list the decision to remove the operating license from Bank Mellat’s Istanbul central branch.
The branch belongs to Bank Mellat, which is headquartered in Tehran.
The official decision did not directly cite U.S. pressure or sanctions as the reason for the move. Instead, Turkey based the action on its banking law.
BDDK cites banking law
The Turkish regulator acted under Article 71 of Banking Law No. 5411.
Turkish law allows authorities to withdraw a bank’s operating permission when continuing operations could threaten depositors’ rights or the security and stability of the financial system.
The official notice did not provide additional details about specific operational problems at Bank Mellat.
As a result, the decision itself does not establish that the license removal directly resulted from U.S. sanctions. However, it comes as Washington increases pressure on countries and financial institutions that maintain links with Iran.
US increases pressure on Iran
The Bank Mellat decision comes amid a broader U.S. campaign to increase economic pressure on Tehran.
Earlier this month, the U.S. Treasury Department imposed sanctions on a small Turkish investment bank and two of its subsidiaries. Washington has also pressed other countries to limit economic and commercial links with Iran.
The United States has used sanctions to target Iranian financial networks and companies accused of supporting Tehran’s activities.
Turkey’s action therefore comes at a sensitive time for its financial relationship with Iran. However, the Turkish regulator did not mention U.S. measures in its official announcement.
Mahan Air flights also affected
The latest banking decision follows other developments involving Turkey and Iran.
The U.S. Treasury said Turkey and Oman agreed to stop flights by Iranian airline Mahan Air to their countries after discussions about compliance with U.S. measures against Iran.
Mahan Air has faced U.S. sanctions for years. The airline has also become part of Washington’s broader efforts to restrict Iran’s international economic and transport networks.
Together, the developments show the growing pressure on Iranian institutions operating beyond the country’s borders.
What happens to Bank Mellat in Turkey?
The BDDK decision removes Bank Mellat’s authorization to operate its Istanbul central branch.
For now, Turkish authorities have not publicly provided further details about the branch’s next steps or the handling of its remaining operations.
The decision also highlights the increasingly difficult environment for Iranian financial institutions operating internationally.
While Turkey’s official notice points to domestic banking law, the timing comes alongside stronger U.S. efforts to pressure Iran’s economic networks.
