Bank Mellat ( fa, بانک ملت, ''Bank Milât'', lit. ''People's Bank'') is a private
Iranian bank. Its name means "Bank of the Nation". Bank Mellat was established in 1980, with a paid capital of Rials 33.5 billion as a merger of ten pre-revolution private banks, comprising Tehran, Dariush, Pars, Etebarat Taavoni & Tozie, Iran & Arab, Bein-al-melalie-Iran, Omran, Bimeh Iran, Tejarat Khareji Iran and Farhangian.
Currently, the bank's capital amounts to Rls 13,100 billion and it is one of the largest
commercial bank
A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit.
It can also refer to a bank, or a division of a large bank, which deals with co ...
s in the Islamic Republic of Iran, ranking among the top 1000 banks of the world.
In 2007 the Iranian government started the process of privatising the bank as part of a policy of selling 80% of state-owned stakes in banking, media, transportation and mining companies.
The Bank Mellat London branch was merged with the Bank Tejarat branch to form
Persia International Bank PLC.
Sanctions and court actions
The
United States Department of the Treasury
The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and ...
has mentioned Bank Mellat and Persia International in their watchlist of Iranian banks which may be trading in violation of
UN Security Council Resolution 1803
UN Security Council Resolution 1803 was adopted on March 3, 2008, by a vote of 14-0-1, with Indonesia as the only abstention. The Security Council of the United Nations, acting pursuant to Article 41 of Chapter VII of the UN Charter, required ...
.
On 29 January 2013, the
European General Court
The General Court, informally known as the European General Court (EGC), is a constituent court of the Court of Justice of the European Union. It hears actions taken against the institutions of the European Union by individuals and member stat ...
in Luxembourg ruled to annul the European Union sanctions in place since 2010 against Bank Mellat on grounds of supporting the Iranian nuclear and missile programs, stating that the basic rights of the bank had been denied and there was no evidence supporting the claim. Bank Mellat intends to sue for damages. On 18 February 2016, the
Court of Justice of the European Union
The Court of Justice of the European Union (CJEU) (french: Cour de justice de l'Union européenne or "''CJUE''"; Latin: Curia) is the judicial branch of the European Union (EU). Seated in the Kirchberg quarter of Luxembourg City, Luxembour ...
concurred with the General Court decision that the reasons given for sanctions were too vague.
A related action in the British courts was taken to the
Supreme Court of the United Kingdom in March 2013, causing the court to hold a closed hearing for the first time. In June 2013, the Supreme Court ruled that the UK government's sanctions on the bank had been unlawful with one justice stating that targeting Bank Mellat was "irrational and disproportionate".
[ Bank Mellat is claiming damages from the UK government for the loss of business between 2009 and 2013.]The Times
''The Times'' is a British daily national newspaper based in London. It began in 1785 under the title ''The Daily Universal Register'', adopting its current name on 1 January 1788. ''The Times'' and its sister paper '' The Sunday Times'' (f ...
'' later reported that £1.25 billion plus interest was paid to Bank Mellat, through a third country entity to avoid US sanctions.
References
External links
Official Website
{{TSE Companies of Iran
Banks of Iran
Banks established in 1980
Companies listed on the Tehran Stock Exchange
Iranian companies established in 1980
Iranian entities subject to the U.S. Department of the Treasury sanctions