On August 24, U.S. Treasury Secretary Scott Bessent announced Operation Economic Outcast, a campaign targeting Iran's financial system. Bessent said Bank Melli, one of the Iranian state's largest banks, was the only entity in the first wave of designations whose foreign branches "must be shuttered and dark." More than 60 entities, individuals and vessels were designated in the opening round.
Britain designated Melli Bank plc, the bank's London-based subsidiary, separately under its nuclear sanctions regime in September 2025, but has not revoked the institution's British banking license. The bank remains registered in England with full regulatory authorization from Britain's financial regulators. Every share of Melli Bank plc belongs to Bank Melli Iran, which is owned by the Iranian state.
Since late September, the bank has been barred from writing new loans or taking new customers. A general license from the UK Treasury, issued three and a half weeks after designation, permits only four categories of payments: wages and severance for UK-based staff, pensions, IT expenses, and accounting fees. The bank must report every payment monthly to the Treasury.
The bank's 2025 audited accounts, filed with the UK registry in June, showed its core business was financing trade between Iran and Europe through letters of credit, with about 92 percent of revenue earned in euros. In 2024, the bank recorded its best profit since 2014, at €2.4 million; in 2025, fee income from trade finance surged 71 percent before sanctions took effect in late September. The bank's British auditor has formally warned of "material uncertainty" over whether it can continue as a going concern.
The bank's Hong Kong staff left in January when a payment license for their salaries failed to arrive. Layoffs began in London in December, and the Tehran representative office is closing. Four board members have departed in the past 14 months, while total board compensation rose to €905,000 in 2025.
Britain's Chancellor John Healey welcomed Operation Economic Outcast on August 25, the day after Bessent announced the campaign. Healey said Britain had imposed more than 240 sanctions on Iran since Labour took office in 2024 and pledged to work with Washington on economic pressure.
