The Central Bank of the United Arab Emirates (UAE) issued a statement informing that it has applied 'strict coercive measures against the branches of Bank Melli Iran' within the country. These sanctions were imposed due to 'violations related to non-compliance with current rules, legislation, and supervisory decisions.'
Among the irregularities mentioned in the statement are the requirements and duties related to the prevention of money laundering, terrorist financing, and combating proliferation financing.
The UAE has been one of the countries most impacted by retaliations from Iran, which were launched after the start of the Israeli-American offensive at the end of February. Attacks originating from Tehran have repeatedly targeted Arab allies of the United States in the Persian Gulf.
The measures adopted by the Central Bank of the UAE include prohibiting all branches of the Iranian institution from conducting any type of financial transaction originating or destined for Iran, covering fund transfers and trade finance operations.
The statement emphasized that the purpose of these actions is to 'safeguard the solidity and integrity of the UAE financial system,' ensuring that regulatory and financial entities adhere to 'the highest compliance standards,' although it did not specify concrete failures of Bank Melli Iran.
The Emirates is a fundamental Arab partner of the United States and maintains diplomatic relations with Israel since 2020. The country led one of the harshest speeches against Iran since the beginning of the war, which caused economic losses in the UAE due to attacks and the blockade of the Strait of Hormuz.
The announced sanctions occurred while Washington intensifies pressure on Tehran, after announcing, at the end of August, the 'Economic Pariah' operation aimed at isolating and blocking the revenue sources of the Islamic Republic. The United States has called on all nations with economic ties to Tehran to join this offensive.
Since then, the US has imposed sanctions on Iranian commercial aviation, the Turkish bank Golden Global Bank, and the branch of an Egyptian bank called Misr, also based in the United Arab Emirates.