Hi Reza

Yes, Iranian-owned businesses generally face a more detailed banking review in the UAE. While it is possible to register a company and apply for a corporate bank account, banks apply enhanced compliance checks because of international sanctions frameworks and their own internal risk policies.

During the application process for business bank account, banks typically pay close attention to:

• The ownership structure and Ultimate Beneficial Owners (UBOs).
• The source of funds and source of wealth for all shareholders.
• The nature of the business activity and expected transaction profile.
• Countries you intend to trade with and where payments will originate.

In many cases, banks also prefer applicants to have a UAE residence visa and a physical presence in the country, as this helps strengthen the overall compliance profile. Non-resident applications involving Iranian shareholders are usually subject to additional internal reviews.

Certain business activities, particularly those involving international trading, logistics, or sectors that carry higher regulatory risk, may receive even greater scrutiny. It's also common for applications to require approval from the bank's central compliance or head office rather than being processed solely at the branch level.

We recently advised an international client whose company had shareholders from multiple jurisdictions, including a country subject to enhanced compliance reviews. By preparing a comprehensive documentation package, clearly demonstrating the source of funds, and selecting a bank whose policies aligned with the business activity, the company was able to complete the account opening process successfully, although it took longer than a standard application.

My recommendation is to approach the banking process with realistic expectations. Strong documentation, complete transparency, and selecting the right banking partner are the factors that make the biggest difference in these cases.