The Monetary Authority will impose restrictions on Melli Bank's Hong Kong branch to protect depositors.

The move follows the European Union Council's decision to introduce financial sanctions against Melli Bank and its parent Bank Melli Iran.

Under the restrictions, Melli Bank's Hong Kong branch must stop all payments and cannot engage in new business without the authority's approval.

Customers with deposits maintained with the bank can withdraw their deposits without the authority's approval up to an aggregate maximum of $150,000 or its equivalent in any foreign currency.