Germany's financial regulator BaFin has withdrawn the banking licence of Bank Saderat Iran's Hamburg branch and ordered its liquidation, according to a notice on October 22.

The branch, which held a German licence from January 1, 1962, can no longer conduct banking business.

Customers hold about €200,000 in deposits that remain restricted by EU sanctions on Iran, which Brussels reimposed after the snapback mechanism was triggered in September 2025.

Any payout by the liquidator needs sanctions approval from the Bundesbank's financial sanctions service centre, the notice said.

BaFin withdrew the licence on November 5, 2025, and the decision became final on December 8, 2025.

The regulator cited serious organisational deficiencies under section 25a of the German Banking Act, first identified in a special audit in 2023, which the bank did not remedy, and a suspension of business lasting more than six months.

Because the bank is subject to sanctions, the law presumes that its managers are unreliable, whether or not they are personally at fault.

BaFin ordered the liquidation on June 11, 2026. The bank appealed but withdrew the appeal on September 23, and the regulator says the order has been final since July 15. On September 30, the Hamburg district court appointed FUW Treuhand Projekt Management of Berlin as liquidator.

The branch operated in Hamburg and Frankfurt am Main and focused on Iran-related export business, including accounts, payments, letters of credit, lending and guarantees.

Total assets were €62.4mn at the end of 2025, and it had 13 employees. The closure comes as the rial has fallen to record lows.

BaFin said no deposit guarantee case has been declared and that a liquidation does not by itself mean a bank is insolvent.