Bank Mellat was established in 1980, with a paid capital of Rials 33.5 billion as a merger of ten pre-revolution private banks, comprising Tehran, Dariush, Pars, Etebarat Taavoni & Tozie, Iran & Arab, Bein-al-melalie-Iran, Omran, Bimeh Iran, Tejarat Khareji Iran and Farhangian.

[4] On 29 January 2013, the European General Court in Luxembourg ruled to annul the European Union sanctions in place since 2010 against Bank Mellat on grounds of supporting the Iranian nuclear and missile programs, stating that the basic rights of the bank had been denied and there was no evidence supporting the claim.

[9][10] Bank Mellat is claiming damages from the UK government for the loss of business between 2009 and 2013.

[10][13] The Times later reported that £1.25 billion plus interest was paid to Bank Mellat, through a third country entity to avoid US sanctions.

[14][15] However the British government stated in parliament "the amount paid in respect of the settlement was €91,352,709.35", plus £1 million for legal costs.