Germany Orders Liquidation of Iran’s Bank Saderat Branch

At a Glance

Germany’s financial regulator BaFin has ordered the liquidation of Bank Saderat Iran’s branch in Hamburg.
The regulator had revoked the bank’s license in November 2025 after identifying legal and regulatory shortcomings.
The branch had 13 employees and €62.4 million in assets, according to BaFin.
The decision follows other measures targeting Iranian banks amid renewed sanctions.

Germany’s financial regulator has ordered the liquidation of Bank Saderat Iran’s Hamburg branch, following the revocation of its banking license and restrictions linked to sanctions against Iran.

Key Statements and Focus Areas

BaFin Orders Liquidation

Germany’s Federal Financial Supervisory Authority, known as BaFin, said the bank was no longer permitted to conduct banking business.

The regulator said it had revoked the branch’s license in November 2025 after the institution failed to address shortcomings identified by regulators and violated legal requirements.

A Hamburg court appointed a liquidator in September 2026, BaFin said.

Bank’s Financial Position

According to BaFin, the branch had:

13 employees
€62.4 million in assets

Wider Measures Against Iranian Banks

The action follows BaFin’s September 2026 declaration that a German branch of Iranian state-owned Bank Sepah was insolvent.

The measures come amid sanctions affecting Iranian financial institutions and tighter scrutiny of their operations in Europe.

Germany has ordered the liquidation of Bank Saderat Iran’s Hamburg branch, adding to regulatory action against Iranian financial institutions operating in Europe.

BaFin said the bank’s license had been revoked in November 2025 after it violated legal requirements and failed to remedy shortcomings identified by the regulator. A Hamburg court appointed a liquidator in September 2026.

The branch had 13 employees and €62.4 million in assets, according to BaFin. The bank did not immediately respond to a Reuters request for comment.

The decision follows action against Bank Sepah’s German branch, which BaFin declared insolvent in September 2026. Separately, the European Union reinstated previously suspended sanctions against Iran in September 2025, including financial restrictions affecting Iranian banks.

FYI

The liquidation highlights the growing constraints facing Iranian banks operating in Europe amid renewed sanctions and tighter financial oversight. Restrictions can affect cross-border payments, access to assets and the ability of banks to serve customers involved in Iran-related trade.

The Bank Saderat case also illustrates the distinction between sanctions-related restrictions and regulatory enforcement: BaFin cited legal and organizational shortcomings alongside the sanctions environment. The action against this branch does not, by itself, mean that all Iranian banks operating in Germany have been closed.