Sanctions on Bank Melli by the Central Bank of the United Arab Emirates
The UAE Central Bank banned financial transactions for Bank Melli branches due to regulatory violations and failure to comply with anti-money laundering obligations.
The Central Bank of the United Arab Emirates announced that strict financial sanction measures have been implemented against the branches of the Iranian bank Bank Melli operating in the country.
Grounds for Sanctions Explained
In an official statement made by the Central Bank of the United Arab Emirates, it was reported that the sanction measures were taken due to non-compliance with the regulations and supervisory decisions in force in the country.
The statement also drew attention to obligations within the scope of combating money laundering, the financing of terrorism, and the financing of the proliferation of weapons.
Financial Transactions Prohibited
In accordance with the audit results and the powers granted to the Governor of the UAE Central Bank, Bank Melli's branches were prohibited from conducting financial transactions to or from Iran.
It was particularly noted that the ban covers trade finance and all kinds of financial transfers.
Emphasis on the Integrity of the Financial System
The UAE Central Bank stated that it will continue to take necessary supervisory measures in order to protect the integrity and soundness of the country's financial system.
Previous Developments and Background
Following two missiles stated to have been launched from Iran, the Abu Dhabi administration had announced on August 18 that it had suspended all commercial activities and financial transactions with Tehran.
The US Department of the Treasury, in a statement on August 28, stated that it had added Reza Mohammad Taeedi, who served as a manager at Bank Melli's Dubai branch, to the sanctions list.