UAE restricts Iran’s Bank Melli over alleged financial violations

The United Arab Emirates has largely barred Iran’s biggest state-owned financial institution, Bank Melli, from conducting business in the Gulf state, adding to economic pressure on Tehran amid its conflict with the United States.

The UAE central bank announced on Wednesday, September 23, that Bank Melli can no longer process financial transactions to or from Iran through the Emirates. The restrictions also cover transfers and the financing of trade transactions.

The UAE central bank accused the bank of violating laws “related to combating money laundering, the financing of terrorism and proliferation financing.”

Dubai and other emirates have until recently served as major hubs for Iran’s financial and trade activities.

The restrictions follow an August decision by the UAE to suspend all trade and financial transactions with Iran until further notice. The move comes as tensions have escalated, with Iranian authorities repeatedly attacking neighbouring countries allied with the United States since the start of the Iran war, including the UAE.

The latest measures also come after Washington announced plans for additional sanctions aimed at isolating Iran economically. The United States has threatened so-called secondary sanctions against countries and organisations that continue doing business with Iran in areas including digital assets, technology, gold, aviation and shipping.

U.S. President Donald Trump also issued a warning about Iran in an address to world leaders at the United Nations on Tuesday, saying he could “annihilate” Iran.

By Tamilla Hasanova