Emirates impose sanctions against Iranian bank branches in the country

O In a press release, the UAE Central Bank announced that it imposed “strict coercive measures against the branches of Bank Melli Iran” in the country, sanctions resulting from “infringements related to non-compliance with the rules, legislation and supervisory decisions in force”.

Infringements, according to the statement, include “requirements and obligations for the prevention of money laundering, terrorist financing and the fight against proliferation financing”.

The UAE has been one of the countries most affected by the Iranian retaliation attacks launched after the end of February of the Israeli-American offensive.

Tehran's attacks have repeatedly hit the Arab allies of Washington in the Persian Gulf.

The measures taken by the Central Bank of the Emirates include the prohibition on all branches of the Iranian entity to “realise any financial transaction originating in or destined for Iran”, which includes transfers of funds and commercial financing operations.

The Communication indicated that the measures aim to “save the soundness and integrity of the UAE financial system” so that financial institutions and regulatory authorities comply with “the highest standards of compliance” without referring to specific Bank Melli Iran defaults.

The Emirates are one of the main Arab partners in the United States and have also had diplomatic relations with Israel since 2020, leading one of the toughest public speeches against Iran since the beginning of the war, which has caused damage to the Emirates economy due to the attacks and the blockade of the Ormuz Strait.

The sanctions announced today take place at a time when Washington is increasing pressure on Tehran, after, at the end of August, it announced the operation “Economic Outcast” to isolate and block the sources of income of the Islamic Republic.

Washington has urged all countries with economic ties to Tehran to join this offensive.

The United States has since announced sanctions against Iranian commercial aviation, the Turkish bank Golden Global Bank and the subsidiary of an Egyptian bank Misr also in the United Arab Emirates.