Turkey's banking regulator has revoked the operating license of Iranian lender Bank Mellat's Istanbul branch, according to a notice published in the country's Official Gazette on Saturday, Reuters reported.
The decision comes as the US continues to press countries to tighten economic pressure on Iran.
Turkey's Banking Regulation and Supervision Agency (BDDK) said it had revoked the license of Bank Mellat's Istanbul branch, whose head office is in Tehran. The notice did not refer to US sanctions or cite any specific operational issues behind the decision.
ALSO READ: US Sanctions Turkish Bank Over Iran Links, Warns More Banks Could Follow
Reuters citing the official notice reported that the action was taken under a provision of Turkey's banking law that allows authorities to revoke or withdraw a bank's license if its continued operations are considered a risk to depositors' rights or the security and stability of the financial system.
The move follows recent US sanctions targeting a Turkish financial institution and two of its subsidiaries over their alleged links to Iran.
Earlier this month, the US Treasury Department sanctioned Istanbul-based Golden Global Yatirim Bankasi, along with asset manager Golden Global Portfoy Yonetimi and asset leasing company Golden Global Varlik Kiralama.
The US alleges that Golden Global Bank facilitated tens of millions of dollars in transactions for Iran's Islamic Revolutionary Guard Corps-Qods Force and provided correspondent banking services to Iranian financial institutions.
The Treasury further alleged that the bank was established to help Iran's shadow banking network transfer oil revenues from China to Turkey, where the funds could be converted into cash and gold.
The three entities were added to the Treasury Department's Office of Foreign Assets Control (OFAC) Specially Designated Nationals list, restricting their access to the US dollar-based financial system.
ALSO READ: Riyadh On Alert: Saudi Arabia Issues Air Raid Warning As Houthi Attacks Intensify
The US Treasury also issued a general licence allowing transactions necessary to wind down dealings with the sanctioned entities.
US Treasury Secretary Scott Bessent, speaking to America's Voice News, described the latest sanctions as effectively meaning the targeted entities were “out of business.”
The Treasury Department had also said Turkey and Oman agreed to halt flights by Iranian airline Mahan Air following discussions over compliance with US measures against Tehran
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.