Turkey revokes Bank Mellat branch operating permit

Turkey’s Banking Regulation and Supervision Agency (BDDK) has revoked the operating permit of the Turkish central branch of Iran’s Bank Mellat in Istanbul, Ukrinform reports. The development changes the regulatory status of a specific foreign-bank operation in Turkey, making it relevant primarily to customers and businesses whose transactions involve that branch.

As of September 20, the central issue for those counterparties is the branch’s authorisation to conduct banking business. Revoking an operating permit concerns the legal basis for providing banking services, rather than a change in branding, ownership structure or commercial strategy.

Context

BDDK is Turkey’s banking regulation and supervision authority. Its decision concerns the permit held by Bank Mellat’s Turkish central branch. A foreign bank’s identity and its authorisation to operate through an establishment in another country are distinct matters: the latter is governed by the rules of the jurisdiction hosting that operation.

An operating permit forms part of the regulatory foundation for a bank’s activities. Its revocation is different from a temporary technical outage, shorter opening hours or the closure of an individual service counter. For counterparties, the relevant questions therefore concern the availability of a banking channel and the handling of payments, rather than routine service arrangements.

There is also a distinction between authorisation to conduct business and the treatment of existing obligations. A decision on regulatory status is not, by itself, a procedure for returning funds, completing transfers or administering outstanding contracts. Those matters depend on the applicable official arrangements and communications to the customers and counterparties concerned.

For international payments, the recipient bank’s name is only one part of the transaction. Transfers can involve intermediary institutions, while execution depends on the availability of the particular route and the checks performed by participating banks. Establishing whether a payment involves Bank Mellat’s Istanbul branch therefore requires examining the full banking details, not simply the destination country.

A business preparing a payment through that branch should confirm with its servicing bank whether the instruction can be processed before submitting it. For money already sent, the useful enquiry is about the individual transaction: whether it has been completed, remains in processing or requires further action. That is more precise than assessing a transfer solely from a general announcement about the institution.

Changes to payment details under existing contracts also warrant verification. If a trading partner supplies a replacement account, confirmation through a previously established communication channel helps ensure that the recipient and instructions are genuine.

The immediate business relevance is concentrated on transactions involving the affected Turkish operation. Checking the status of individual payments and the official arrangements for subsequent steps provides a practical basis for decisions on transfers and contractual obligations.

Based on reporting from Укрінформ — економіка.