NEW DELHI: The Central Bank of the United Arab Emirates (CBUAE) has imposed strict enforcement measures against branches of Bank Melli Iran operating in the country, citing violations of UAE regulations and supervisory requirements.

Under the measures, all branches of Bank Melli Iran in the UAE have been prohibited from conducting financial transactions to and from Iran. The restriction covers trade finance and fund transfers, according to the CBUAE.

The Central Bank said the action followed regulatory examinations that found non-compliance with UAE laws, regulations and supervisory decisions, including obligations related to anti-money laundering (AML), combating the financing of terrorism (CFT), and preventing proliferation financing.

The enforcement action has been 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. The regulator said the measures were imposed under powers granted to the Governor of the Central Bank under applicable UAE laws.

The move comes amid wider UAE measures concerning financial and commercial dealings with Iran. In August, the UAE Ministry of Foreign Affairs said that trade, commercial exchanges and financial transactions with Iran had been halted until further notice, citing regional escalation and the need to safeguard the international financial system.

The CBUAE said it would continue strengthening its supervisory framework to protect the integrity and soundness of the UAE's financial system and ensure that financial institutions comply with applicable regulatory requirements and international standards.