BDDK Revokes Bank Mellat Istanbul Branch License
Turkey's banking regulator withdrew the Iranian state-owned bank's operating permit under Banking Law Article 71, citing risk to depositors and financial stability.
KEY POINTS
- BDDK revoked Bank Mellat Istanbul branch license on Sept. 18, published Sept. 19
- Decision based on Banking Law Art. 71/1-(b) citing risk to depositors and stability
- Specific inspection findings not disclosed in Official Gazette notice
- Bank Mellat has operated in Turkey since 1982; listed on U.S. OFAC sanctions
- Existing operations halted; liquidation or transfer process to follow under BDDK
The Banking Regulation and Supervision Agency (BDDK) decided on September 18 to revoke the activity license of Bank Mellat's Istanbul Turkey Main Branch, according to a decision published in the Official Gazette on September 19. The move was based on Article 71, paragraph 1, subparagraph (b) of Banking Law No. 5411, which permits license withdrawal when a bank's operations endanger depositors' rights or financial stability.
The regulator's decision followed an examination of correspondence dated September 18, though the published text did not disclose the specific findings that triggered the action. Bank Mellat, headquartered in Tehran, has operated in Turkey since 1982 and later opened branches in Ankara and Izmir.
“The inspection details leading to the license revocation were not additionally explained in the decision text.”
The bank appears on U.S. Treasury OFAC sanctions lists linked to Iran's nuclear program, with its entry last updated on September 17. The BDDK decision halts new customer onboarding and banking transactions; liquidation or transfer procedures under BDDK supervision will determine the fate of existing customer accounts.
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