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Prosecutor General Warns Against Riseing Fraud

Prosecutor General Warns Against Riseing Fraud Prosecutor General Warns Against Riseing Fraud

The soaring financial fraud cases in the banking system is due to the fact that the banking regulations are not upheld when providing loans, said Prosecutor General Ebrahim Raeisi on Sunday night.

Despite the fact that banks are supposed to be custodians of the monetary system they do not properly attend to cases of non-performing loans and fraud, he added.

Providing a list of those having failed to pay debts is insufficient, he said, adding that the central bank should also submit precise information and charts that include the amount and source of payments to the judiciary.

Last year, the Central Bank of Iran submitted a list of 575 major debtors in the banking system to the judicial system.

Judiciary chief Sadeq Larijani had earlier said the judiciary will soon look into a major financial fraud case in which a private bank has given one individual a loan of 65 trillion rials ($2.3 billion at official exchange rate). He did not identify the bank nor the loan recipient.

Hamid Tehranfar, deputy governor of the CBI for supervision affairs, said that this case holds the third spot on the list, Banker website reported.

The amount of NPLS or non performing loans within the banking system stand at 930 trillion rials ($33.6 billion at official exchange rate), though the figure is estimated at 2 quadrillion rials by other officials.

“Sixty percent of the amount is owed by the industrial and agricultural sectors,” Tehranfar said Sunday.

Financialtribune.com