Bahrain court convict Iranian banks of money laundering

Manama

The Daily Tribune - www.newsofbahrain.com

The High Criminal Court yesterday convicted the Central Bank of Iran and other Iranian banks of money laundering. The Future Bank and five of its officials were also found guilty, sentencing them to five years in prison and slapping BD1 million fine each.

Advocate General Chancellor Nayef Youssef Mahmood, head of the Financial Crimes and Money Laundering Prosecution Office, said the total fines slapped on the Central Bank of Iran and the other banks implicated in the wide money-laundering scheme reached BD37 million.

The court also ordered the confiscation of the illegally transferred money that reached $112 million, he added. The Public Prosecution had previously announced that its investigations had revealed that the Central Bank of Iran planned to launder billions of dollars through the Future Bank that was established in Bahrain and controlled by two Iranian banks, Bank Melli Iran and Bank Saderat Iran, to pass suspicious financial transactions in favour of Iranian entities, mainly the Central Bank of Iran, in violation of laws and regulations.

The Future Bank received requests for suspicious financial transfers in favour of the Central Bank of Iran and other Iranian banks through the “SWIFT” system without reporting them, setting aside their sums or checking their legitimacy in an effort conceal the identity of the Iranian bank. The scheme allowed the bank to make the transfers in violation of laws and regulations.

Advocate General Mahmood added that investigations are still underway regarding the rest of the incidents in which the Central Bank of Iran and other Iranian banks exploited the Future Bank to carry out international transactions in violation of the Law on Prohibition and Combating Money Laundering and Combating Terrorism Financing and banking laws and regulations.