Question 1

What is Melli Bank?

Accepted Answer

Melli Bank is a UK-incorporated commercial banking institution headquartered in London. It is a wholly owned subsidiary of Bank Melli Iran, Iran's largest bank, which has maintained a presence in London since 1967. The bank specializes in corporate banking, trade finance, treasury services, and structured finance, primarily serving international clients engaged in trade with Iran and other markets.

As of 2024, Melli Bank holds approximately 375.54 million EUR in total assets and employs 46 people. The bank is the 160th largest bank in the United Kingdom and ranks as the 118th most profitable UK bank by return on assets.

Question 2

When was Melli Bank founded?

Accepted Answer

Melli Bank was incorporated in the United Kingdom on 1 February 2001, initially under the name "Optionindigo Public Limited Company," later renamed "Melli Iran PLC" in February 2001, before adopting its current name "Melli Bank plc." The bank commenced its independent operations on 1 January 2002, acquiring the assets of the London branches of Bank Melli Iran at that time.

Bank Melli Iran, its parent company, was established on 8 September 1928 under Reza Shah's rule, making it one of the first Iranian commercial banks and serving as Iran's central bank until 1960.

Question 3

Where is Melli Bank headquartered?

Accepted Answer

Melli Bank is headquartered in London, United Kingdom. The bank's primary registered office is located at 98a Kensington High Street, London, W8 4SG, though its operational headquarters are at 1 London Wall, London, EC2Y 5EA. The bank also maintains a branch in Hong Kong at Unit 1703-04, Hong Kong Club Building, 3A Chater Road, Central, and a representative office in Tehran, Iran.

Question 4

Where does Melli Bank operate?

Accepted Answer

Melli Bank operates primarily in the United Kingdom and Hong Kong, with representative presence in Iran. The bank has established itself as a bridge for international trade finance, particularly between the UK and Iran, as well as supporting trade with major Iranian trading partners including China, South Korea, and Japan. The bank's operations are confined to these locations, with no domestic retail branch network within the UK beyond its headquarters.

Question 5

What services does Melli Bank offer?

Accepted Answer

Melli Bank provides specialized commercial banking services tailored to corporate and institutional clients:
• Corporate Banking: Bilateral and syndicated loans, corporate accounts, and capital investment project financing
• Trade Finance: Letters of credit, trade financing, and international payment services
• Treasury Services: Foreign exchange management, interest rate products, and liquidity management
• Structured Finance: Specialized financial solutions including aircraft financing and complex project financing
• Deposit Services: Current accounts, savings accounts, and time deposit accounts for corporate clients

The bank does not offer traditional retail banking services. Deposits are protected up to GBP 85,000 per depositor through the UK's Financial Services Compensation Scheme (FSCS).

Question 6

What makes Melli Bank unique?

Accepted Answer

Melli Bank's distinctive characteristics include:
• Strategic International Position: As the UK subsidiary of Bank Melli Iran, it serves as a crucial link between Iran and Western markets, particularly in trade finance
• Specialized Corporate Focus: The bank concentrates exclusively on institutional and corporate clients rather than retail banking, allowing for deep expertise in complex financial structures
• Regulatory Compliance Excellence: The bank maintains strict adherence to UK and Hong Kong anti-money laundering and counter-terrorism financing regulations, with a dedicated compliance team and comprehensive staff training programs
• Access to Parent Network: Clients benefit from the extensive infrastructure of Bank Melli Iran, which operates over 3,300 branches domestically and maintains international presence across 11 countries
• Geographic Reach: With operations spanning London, Hong Kong, and Tehran, the bank facilitates trade flows between major Asian markets and the Middle East

Question 7

What type of financial institution is Melli Bank?

Accepted Answer

Melli Bank is a Universal Bank with a commercial banking focus. Under UK financial services regulation, it operates as a Public Limited Company and is classified under SIC code 64191 (Banks).

The bank is authorized by the Prudential Regulation Authority (PRA) and regulated by both the Financial Conduct Authority (FCA) (reference number 207380) and the PRA. It conforms to all UK accounting standards and disclosure requirements, maintaining robust governance structures through an independent Board of Directors.

The bank's unique position as an international subsidiary of a major Middle Eastern bank gives it characteristics of both a commercial bank and an international finance institution, specializing in cross-border transactions and trade finance rather than traditional universal banking services.

Question 8

Has Melli Bank experienced significant regulatory changes?

Accepted Answer

Melli Bank was subject to international sanctions between 2008 and 2016. In June 2008, the bank was designated under the EU sanctions regime targeting Iran, resulting in an asset freeze that halted its normal operations. During this period, the bank implemented a cautious strategy to manage its balance sheet while maintaining regulatory compliance.

In January 2016, following the Joint Comprehensive Plan of Action (JCPOA), Melli Bank and its parent company Bank Melli Iran were removed from international sanctions lists. The bank was subsequently granted regulatory approval to resume its commercial banking operations in the United Kingdom and the European Union.

Despite this period of disruption, the bank has demonstrated financial recovery, with total assets growing by 5.61% from 2023 to 2024 and annual profits increasing by 273.97% in 2024.

Melli Bank

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About Melli Bank in the United Kingdom