Defense Minister Israel Katz Declares Iranian State Bank Melli a Terrorist Organization
Israeli Defense Minister Israel Katz declares Iranian State Bank Melli a terrorist organization, targeting a key funding route for terror proxies.
Jerusalem, 15 January, 2026 (TPS-IL) — Israel’s Defense Minister Israel Katz signed a proclamation today (Thursday) defining Iranian State Bank Melli as a terrorist organization. He did so at the request of security agencies and on the recommendation of the Headquarters for Combating Economic Terrorism at the Ministry of Defense, and in accordance with its authority under Section 11 of the Counter-Terrorism Law.
Bank Mali is a key factor in the Iranian regime’s transfer of funds to terrorist organizations, and serves as the regime’s central financial arm in financing terrorist activity throughout the Middle East and beyond, said Katz’s office.
This is a government bank in the service of the regime that operates one of the regime’s most extensive cover networks, for the purpose of circumventing international sanctions and laundering money. Among other things, the bank provides extensive financial services to Iran’s security forces, including providing bank accounts and transferring funds to the Iranian Revolutionary Guards and the Quds Force, which are directly involved in financing, directing, and operating terrorist organizations.
“Declaring Bank Mali a terrorist organization will help thwart one of the main funding routes for Iran’s terrorist proxies,” said Katz’s office noting that it was declared a terrorist organization by the United States in 2018.
Israel’s Defense Ministry added that this move, alongside the previous similar decisions regarding the Central Bank of Iran (CBI), Bank Mellat, and Bank Shahr, constitutes “another layer in the ongoing effort by the security establishment to damage the economic infrastructure of Iranian terrorism and prevent the financing of the activities of terrorist organizations operating against the State of Israel and its citizens.”
























