UAE Central Bank Restricts Bank Melli Iran Branches Over AML/CFT/CPF Compliance Violations
The Central Bank of the United Arab Emirates (CBUAE) has imposed enforcement measures on the UAE branches of Bank Melli Iran after examinations identified violations of UAE regulations, laws and supervisory decisions, including requirements relating to anti-money laundering, counter-terrorist financing and counter-proliferation financing.
The measures, announced on 23 September 2026, prohibit all Bank Melli Iran branches operating in the UAE from conducting financial transactions to and from Iran. The restriction expressly covers trade finance and fund transfers.
Measure follows supervisory examinations
According to the official announcement carried by the Emirates News Agency (WAM), the action was taken under Article 168(1)(c) of Federal Decree-Law No. 6 of 2025 concerning the Central Bank, regulation of financial institutions and activities, and insurance business.
CBUAE said the violations included non-compliance with requirements and obligations under legislation addressing money laundering, terrorist financing and proliferation financing. The regulator did not publish a detailed breakdown of the specific control failures identified during the examinations.
The decision is therefore broader than a conventional monetary penalty: it directly restricts the affected branches from processing Iran-linked financial activity, including two core banking channels—trade finance and cross-border fund transfers.
Regulatory context
The action concerns the UAE operations of an Iranian bank and follows recent international scrutiny of Bank Melli Iran and Iran-related financial channels. For AML/CFT purposes, however, the CBUAE announcement is significant on its own terms because the regulator expressly linked the enforcement measure to failures that included AML, terrorist-financing and proliferation-financing obligations identified through supervisory examinations.
CBUAE said it would continue taking supervisory measures to protect the soundness and integrity of the UAE financial system and ensure supervised institutions comply with applicable compliance standards.
Sources
Central Bank of the UAE / Emirates News Agency (WAM), 23 September 2026: Central Bank imposes strict sanctions on branches of Bank Melli Iran operating in UAE.
