CBUAE has imposed strict enforcement measures on the UAE branches of Bank Melli Iran

CBUAE examinations found non‑compliance with UAE regulations, laws, and supervisory decisions, including obligations related to AML, CTF, and proliferation financing. As a result, the regulator has prohibited all Bank Melli Iran branches in the UAE from conducting any financial transactions to or from Iran, including trade finance and fund transfers.

The CBUAE emphasised that it will continue strengthening its supervisory framework and expects all supervised institutions to adhere to UAE regulations and international standards.

Key Takeaways for Compliance Professionals

1. Cross‑Border Transactions Face Greater Scrutiny

The prohibition on Iran‑linked transactions underscores heightened regulatory attention on cross‑border activity, especially involving higher‑risk jurisdictions. Institutions must ensure that cross‑border controls are robust, current, and capable of preventing prohibited flows.

2. Transaction‑Level Controls Are Critical

The enforcement action highlights the importance of real‑time, transaction‑level controls that detect prohibited activity before execution. Reliance on periodic customer reviews alone is insufficient in environments where geopolitical and sanctions risks evolve rapidly.

3. AML Controls Must Address Multiple Risks

Institutions operating across higher‑risk corridors must ensure their AML frameworks cover money laundering, terrorist financing, proliferation financing, and jurisdiction‑specific regulatory restrictions. Integrated risk assessments and multi‑layered controls are essential.

4. Supervisory Expectations Are Increasing

The CBUAE reiterated its commitment to strengthening supervision and safeguarding the integrity of the UAE financial system. This action signals continued regulatory focus on effectiveness, not just technical compliance.
 

Source: CBUAE imposes enforcement measures on Bank Melli Iran branches in the UAE