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Lenders Warned of Money Laundering Scams

Lenders Warned of Money Laundering ScamsLenders Warned of Money Laundering Scams

The spokesman of the parliament’s economics committee on Sunday warned commercial banks against any involvement in money laundering scams.

“Commercial lenders must think beyond merely attracting deposits and conduct research before starting business with customers,” said Rahim Zare, as cited by ICANA, the parliament’s news agency.

“Boosting economic development is of the top priorities in Iran. An effective solution that would ultimately result in economic development is putting a stop to money laundering,” he added.

Fair distribution of financial resources is also a pressing issue that will not come about so long as money laundering persists, the lawmaker said.

“Banks and credit institutions are widely involved in money laundering process,” but it is of uttermost importance to prevent this, ICANA quoted him as saying.  

As Iran is geographically positioned in route of smuggled goods and drugs, smugglers widely launder money made from illegal trades through the banking system.

“Noticeable efforts have been made to fight money laundering,” the MP noted, adding that a multilateral approach is needed to properly address the issue. “The judiciary system, police force, financial institutions, and other related organizations must solidly come together in battling the crime.”

Money laundering refers to the process by which the proceeds of criminal activity (like drug trafficking and smuggling) are laundered to give the impression that it is originated from a legitimate source.

By criminalizing money laundering and adoption of an Act and Implementing Regulations, Iran has tried to combat this phenomenon for years, according to the Central Bank of Iran, which is in charge to supervise their compliance with the regulations regarding money laundering prevention.

Financialtribune.com