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The court has ordered the confiscation of the $1.3 billion laundered through this nexus
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Additionally, it imposed a collective fine of BHD19 million (around $50.4 million) on all the convicted parties
Bahrain’s Higher Criminal Court has sentenced six people to up to 10 years in jail for their involvement in the country’s largest money-laundering case, said local reports on Friday, July 30.
Announcing the verdict on Thursday, the court convicted not just these six Future Bank employees but the bank itself, the Central Bank of Iran, and other Iranian banks.
The court also confiscated the $1.3 billion that it said had been laundered as part of this operation, said the reports.
Additionally, it is said to have imposed a collective fine of BHD19 million (around $50.4 million) on all the convicted parties.
Five of the convicted individuals were sentenced to 10 years’ imprisonment each, while the sixth was sentenced to five years in jail.
The reports said the public prosecution announced earlier that investigations had uncovered a large-scale money-laundering scheme operating through Future Bank, established in Bahrain and controlled by two other banks owned by Iran: the National Bank of Iran (Melli) and Bank Saderat Iran.
The scheme reportedly approved illegal financial transactions for the benefit of Iranian entities, most notable of which is the Central Bank of Iran.
The investigations are said to have revealed illegal banking practices and found that the Central Bank of Iran issued instructions to Future Bank on the use of an alternative and unapproved transfer system to complete banking operations.
This was believed to have been used to conceal the source and movement of funds transferred through it and for the benefit of Iranian banks.
The purpose of this was to circumvent international sanctions imposed on Iranian entities that were designed to combat money laundering and terrorist financing.
The practices exploited the Iranian banks’ control over Future Bank and its policies, with both banks acting under the direction of the government of Iran and the Central Bank of Iran, said the reports.
The scheme led to the laundering of more than $1.3 billion through this channel, said the reports.