Turkey Revokes Operating License of Iran's Bank Mellat After 44 Years

ISTANBUL (AP) — Turkey's Banking Regulation and Supervision Agency has revoked the operating license of Iran's Bank Mellat, ending the institution's 44-year presence in the country. The decision, announced late Friday, marks a significant shift in Ankara's financial relations with Tehran and follows intensified diplomatic pressure from Washington to tighten economic measures against the Islamic Republic.

The regulator cited specific provisions within Turkey's banking law that authorize the suspension or revocation of licenses when a bank's continued operations are deemed to threaten the rights of depositors or the stability of the national financial system. The agency stated in a formal notice that Bank Mellat no longer meets the regulatory requirements necessary to maintain its charter in the Turkish market.

Bank Mellat, one of Iran's largest financial institutions, has maintained branches and operations across Turkey since the early 1980s, serving as a critical conduit for trade between the two nations. The bank facilitated billions of dollars in transactions annually, often acting as a workaround for international sanctions that have long restricted Iran's access to the global banking network. Its closure removes a primary mechanism through which Turkish and Iranian businesses settled cross-border payments.

The move aligns with a broader push by the United States to isolate Iran's financial sector further. US officials have repeatedly urged Ankara to restrict economic ties with Tehran, arguing that continued banking access undermines international sanctions regimes aimed at curbing Iran's nuclear program and regional activities. While Turkish officials have not explicitly linked the revocation to US demands in public statements, the timing of the announcement coincides with high-level diplomatic engagements between Washington and Ankara regarding regional security and economic compliance.

The immediate impact on depositors and businesses reliant on Bank Mellat remains unclear. The regulator has not yet detailed the timeline for the bank's liquidation or the process for transferring assets to other financial institutions. Turkish authorities are expected to issue further guidance in the coming days regarding the protection of customer funds and the settlement of outstanding obligations.

Iranian officials have not immediately commented on the revocation, though the loss of a major banking partner is likely to complicate Tehran's efforts to maintain trade flows with Europe and Central Asia via Turkey. The closure also raises questions about the future of other Iranian financial entities operating in the region, as Ankara may face additional pressure to review remaining ties.

As the Turkish central bank prepares to oversee the wind-down of Bank Mellat's operations, market analysts are monitoring whether this action signals a broader realignment of Turkey's foreign economic policy. The long-term implications for bilateral trade volumes and the stability of regional financial networks remain to be seen as stakeholders navigate the sudden regulatory change.