According to FCN, Amir Jalali, the General and Revolutionary Prosecutor of Alborz County, in an interview with the legal and judicial correspondent of Mizan News Agency, announced the discovery of banking fraud involving 12 bank and non-bank defendants, stating: One of the country’s prominent banks in the late 1980s illegally and in violation of banking regulations proceeded to disburse very large loans in foreign currency and rials.
He continued: Some of these facilities have been paid out, and in some cases, payment has been prevented by court order.
The General and Revolutionary Prosecutor of Alborz County added: Unfortunately, these facilities were disbursed without collateral or without necessary guarantees, though some assets have been recovered and necessary guarantee letters have been obtained for other cases.
He further stated: In this banking fraud case, there are extensive violations because this bank exceeded its legal ceiling of commitment, meaning it disbursed facilities beyond its commitment and legal ceiling.
Jalali stated: In some cases, bank experts assessed collateral and guarantees that had no physical existence, and in some cases, the collateral that was taken had unrealistic assessments or had value several times less than its actual value.
He emphasized: Unfortunately, some individuals who had a role in this case held responsibility during different time periods, and legal proceedings have been conducted in this regard.
The General and Revolutionary Prosecutor of Alborz County noted: Bank guarantee letters were issued in violation of the law and without observance of proper procedures, to the extent that some documents and records presented for obtaining loans were issued by various competent authorities in violation of the law.
** Legal cases filed against some companies and institutions related to this banking fraud
He continued: For some companies and institutions related to this banking fraud, legal cases have been filed and bank managers at the time have been subjected to legal prosecution, and after legal proceedings, they were released upon legal bail.
Jalali announced: Loan recipients, in most cases, by registering shell companies or inactive entities, proceeded to receive large amounts, and the violators were summoned and in some cases released after returning funds to government account and providing sufficient and legal collateral, and investigation of their violations is ongoing.
He emphasized: In this banking fraud case, some permits were issued by legal authorities, and necessary follow-ups in this regard are underway.
The General and Revolutionary Prosecutor of Alborz County stated: This case has two defendants in the banking sector and 10 defendants in the non-banking sector.
He expressed: The expectation from banks is this: if they exercise sensitivity regarding the disbursement of small loans, they should pay legal attention in accordance with disbursement facilities for large loans, and even the expectation is that for billion-toman loans, these strictures should be doubled and supervision should be intensified with observance of legal regulations.
Jalali stated: The expectation is that policies regarding large facilities should change, and banks, just as they resort to the judicial system for the collection of claims, should also inquire into the background of facility recipients through the judicial system in the disbursement of large facilities, so that we do not witness the occurrence of such violations in the banking system.
He acknowledged: Unfortunately, in this case, even the relevant bank did not apply normal and ordinary supervision to examine the loan recipient’s compliance, while banks, in line with their duties as protectors of people’s financial rights and the public treasury, are obligated to comply with legal regulations and standards.
The General and Revolutionary Prosecutor of Alborz County said: Unfortunately, banks in this case and in other cases, whether in the disbursement and collection of facilities and even in the matter of observing protective and security measures and systems, do not pay the necessary and required legal attention to people’s rights and the performance of legal duties.
Source: Mizan
