To regulate credit and financial institutions, Iran’s police are set to take legal action against the establishment of new branches of uncertified credit institutions across the country, in a move to help organize the unregulated money market, Eghtesad News website reported on Tuesday, without citing a source. With law enforcement forces now being directly involved in disciplinary measures against unlicensed institutions, the central bank hopes to get rid of the 6,000 uncertified financial companies. The institutions include interest-free credit unions, cooperatives, bureaux de change and leasing firms. According to latest statistics, nine large credit institutions are operating in Iran, only three of which have central bank permits. The judiciary’s reports show 300 leasing firms are working unchecked, endangering the public money. Out of 1,600 bureaux de change, the reports say, only 428 have the operation license. More than a quarter of 204 credit cooperatives also lack the regulator’s permit.
