Iran cenbank launches legal action against Bahrain over confiscated funds
The central Bank of Iran (CBI) has announced it has started taking legal action against a court ruling in Bahrain to confiscate funds belonging to the CBI and other Iranian banks under allegations of money laundering.
The Tuesday statement by the CBI said that its complaint will be based on a 2004 agreement between Iran and Bahrain which is aimed at encouraging and boosting mutual investment in the two countries.
“The CBI ... started its legal action against the Bahraini government on August 2, 2021 to demand the repatriation of the (Iranian) funds invested in banks in that country,” said the statement.
Bahrain’s High Criminal Court issued a verdict on July 29 to confiscate nearly $1.3 billion worth of Iranian funds in the country, according to a report by the official BNA news agency.
The funds belong to the Future Bank, a joint commercial entity that was closed down in 2016 after Iran and Bahrain cut their diplomatic relations.
The Bahraini ruling claims that Iran’s Bank Melli and Bank Saderat who control the majority of shares in the Future Bank have been engaged in money-laundering activities in recent years to benefit the CBI and other Iranian entities.
Iran has dismissed the case, saying it lacks any legal merit and is simply an attempt to confiscate Iranian funds in the Future Bank under fabricated allegations.
CBI’s Tuesday statement said that the lender had withdrawn a bulk of the Iranian funds in the Future Bank in 2015 in anticipation of deteriorating diplomatic relations with Bahrain.
However, it said that Bahraini banks have refused to return the rest of the funds since then while rejecting CBI’s repeated requests to use them for funding humanitarian missions to help Iran avoid US sanctions targeting its banking system.
What to expect from Iran, Russia linking of banking systems
Iran’s PMI index up 2.8 to 49.8 in month to late October: ICCIMA
Dollar, SWIFT completely removed from Iran-Russia trade: CBI chief
VIDEO | Press TV's news headlines
VIDEO | Nurses protest against Israeli genocide at UN HQ
VIDEO | France-Israel football row
VIDEO | Archbishop of Canterbury quits over handling of abuse by pedo volunteer John Smyth
Hezbollah hits Tel Aviv with ballistic missiles; debuts tactical rocket in anti-Israeli struggle
VIDEO | Iraqi resistance fighters strike ‘vital targets’ across occupied territories
VIDEO | Hezbollah leader to fighters: You are the pride shaking foundations of Zionism
Iran not worried that Trump may toughen oil sanctions: Minister
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
