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CBI Launches New Anti-Fraud Systems

CBI Launches New Anti-Fraud SystemsCBI Launches New Anti-Fraud Systems

The Central Bank of Iran has recently launched two new systems for minimizing check fraud and forged securities, IRIB reported.

The two new systems called Kashef (discover), and Namad (symbol) have been put in effect by the central bank as of this month, said the director of payment systems of the CBI on the sidelines of a conference on preventing document forgery, held on Sunday.

“The systems have been created with the aim of developing electronic banking, and to prevent document forgery in physical transactions,” Davoud Mohammad-Beigi said, calling for promotion of electronic payments.  

Electronic payment processes resemble the function of traditional paper checks, said the CBI official, but offer greater security.

Although e-checks are governed by the same laws that apply to paper checks, they offer protective measures such as authentication and digital signatures to safeguard digital transactions.

Unlike paper documents, electronic ones cannot be forged, according to Mohammad-Beigi, who asserted that with the monitoring of online transactions the possibility of fraud is near zero.

“Electronic checks have two identities, a physical identity and a virtual one,” he said, adding that although the physical identity of a check can be subject to fraud, the virtual one cannot be counterfeited.  

Mohammad-Beigi went on to describe the “electronic signature certification” as one of the significant achievements of the central bank, saying that it secures the users in the sense that their transactions are registered in a national network which is only accessible to authorized parties.

Another accomplishment of the banking system, according to Mohammad-Beigi, is Anti-Money-Laundering (AML) software, which is being used by the banking system.

AML monitors the entire process of electronic transactions in the banking system, said the official.

“The goal of the CBI in the field of banking is to fight money laundering, which is being envisaged in the 20-Year Vision Plan,” said Mohammad-Beigi, adding that “unless all transactions are conducted electronically, the AML software cannot be fully utilized to fulfill this objective.”

Financialtribune.com