On August 24, U.S. Treasury Secretary Scott Bessent announced Operation Economic Outcast, a campaign to sever Iran's economic connections through sanctions on more than 60 entities, individuals and vessels. Bank Melli, one of Iran's largest state-owned banks, drew specific attention when Bessent said all of its foreign branches "must be shuttered and dark."
Eleven months before Bessent's announcement, Britain had already designated Bank Melli's London subsidiary under its nuclear sanctions regime. Melli Bank plc remains registered in England with a full banking license from British financial regulators, the same authorities that oversee Barclays and HSBC. Every share belongs to the Iranian state through its parent, Bank Melli Iran.
Since Britain and the European Union imposed sanctions on the London subsidiary on September 29, 2025, the bank has been forbidden from writing new loans or accepting new customers. A British general license issued weeks after the designation permits only four categories of payments: wages and severance for staff and directors, their pensions, IT bills, and accounting fees.
The bank's 2025 financial statements, filed in June, showed the effects of the freeze. Profit fell 92 percent to €181,000, while legal and professional costs jumped 57 percent to €1 million. The auditor warned of "material uncertainty" over whether the bank could continue operating as a going concern.
On August 25, Britain's Chancellor John Healey welcomed Operation Economic Outcast and noted that Britain had imposed more than 240 sanctions on Iran since Labour took office in 2024. The bank continues to operate under monthly Treasury reporting requirements on every payment it makes.
