▲ A branch of Iran's Bank Melli in Paris, France
The United Arab Emirates imposed sanctions on Bank Melli, an Iranian bank operating within the country, yesterday local time.
According to Reuters and AFP, the Central Bank of the UAE stated in a statement that day, "We have decided to ban all financial transactions with Iran for all branches of Bank Melli operating in the UAE," adding, "This includes trade finance and funds transfers."
The reason for the sanctions is that Bank Melli violated local laws, including regulations related to anti-money laundering and terrorism.
Bank Melli, which began operations in the UAE in 1969, currently has seven branches in the country.
Reuters reported that the UAE has historically been one of Iran's major economic lifelines, and its banks have long held substantial Iran-linked deposits.
However, relations between Iran and the UAE deteriorated sharply after the war began with US and Israeli attacks on Iran in late February, followed by Iranian strikes on several Gulf nations hosting US military bases, including the UAE.
In particular, the UAE announced a month ago on August 18 that it had detected two ballistic missiles launched from Iran and would suspend all trade, commercial exchanges, and financial transactions with Iran.
Reuters reported that it was not immediately clear whether the UAE Central Bank's latest decision was related to the US Treasury Department's decision to sanction Bank Melli late last month.
Previously, the US Treasury Department announced new sanctions on Iran-linked banks and others on August 28 as part of its so-called "maximum pressure" operation against Iran, placing Bank Melli's Dubai branch manager and others on the sanctions list.
At the time, the Iranian Foreign Ministry strongly condemned the new US economic sanctions as "state terrorism" and an "inhumane crime," urging the international community not to participate in the sanctions.
(Photo: AP, Yonhap News)
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