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Bank Melli Iran
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Bank Melli Iran

Iranian state-owned commercial bank, founded 1928 in Tehran; under US sanctions since 2007.

Last refreshed: 17 October 2026 · Appears in 1 active topic

Key Question

When sanctions shut Bank Melli's Iraqi branch, where did its money go?

Timeline for Bank Melli Iran

#181 15 Oct
#175 23 Aug

Linked to the designated Dubai national

Iran Conflict 2026: Treasury widens net as UN watch lapses
View full timeline →

Background

Bank Melli Iran resurfaced in the US Treasury's 15 October 2026 action against Iran's banking channels into Iraq. Treasury said the Baghdad-based International Development Bank for Investment and Finance absorbed Bank Melli's Iraqi capital when the sanctioned branch next door closed. The designation came 15 days after the last US troops left Erbil. In August, Operation Economic Outcast had already listed a Dubai-based Iranian national, Reza Mohammad Taeedi, as linked to the bank.

Bank Melli, The National bank, began operating in 1928 under Reza Shah and is headquartered on Ferdowsi Street in Tehran. It is state-owned. Washington sanctioned it in October 2007, alleging services to Iran's nuclear and missile programmes, and the European Union froze its assets in June 2008.

The bank is a marker for how Iranian money moves once a branch is shut: Treasury's case is that the capital did not leave Iraq but changed hands to a local bank.

Common Questions
What is Bank Melli Iran?
Iran's state-owned national commercial bank, founded in 1928 and headquartered in Tehran. The United States has sanctioned it since October 2007.Source: Wikipedia
Why is Bank Melli Iran in this sanctions update?
OFAC identified newly designated Reza Mohammad Taeedi as linked to Bank Melli Iran.Source: event
Was Bank Melli Iran newly designated on 28 August?
The recorded action names Reza Mohammad Taeedi and links him to the bank; it does not describe a new designation of the bank itself.Source: event
What happened to Bank Melli's branch in Iraq?
Treasury says the US-designated Bank Melli branch in Iraq closed under sanctions and transferred its capital to the International Development Bank for Investment and Finance, which OFAC designated on 15 October 2026.Source: US Treasury press release sb0660
Why is Bank Melli Iran sanctioned by the US?
The US sanctioned it in October 2007, alleging it provided financial services to Iran's nuclear and Ballistic missile programmes. The bank denied wrongdoing.Source: Wikipedia
Who is Reza Mohammad Taeedi?
A Dubai-based Iranian national whom OFAC added to its sanctions list on 28 August 2026, identifying him as linked to Bank Melli Iran.Source: OFAC
Source Material

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 17 October 2026. Editorial standards.