Bahrain brings charges in vast money laundering case linked to Iranian state-owned banks

Bahrain brings charges in vast money laundering case linked to Iranian state-owned banks
The bank at the center of the allegations was set up and controlled by Iran’s Bank Saderat and Bank Melli. (Shutterstock)
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Updated 13 February 2020

Bahrain brings charges in vast money laundering case linked to Iranian state-owned banks

Bahrain brings charges in vast money laundering case linked to Iranian state-owned banks
  • Billions of dollars were funneled through Future Bank, which was controlled by Iran’s Bank Saderat and Bank Melli
  • Operation allowed Iranian organizations, including some sanctioned for terror financing, to secretly move money internationally,

DUBAI: Bahrain launched legal proceedings on Thursday against a number of individuals and businesses involved in a vast money laundering scheme linked to state-owned Iranian banks.

The operation allowed Iranian organizations, including some sanctioned for terror financing, to secretly move money internationally, the Kingdom’s prosecutors said. 

Billions of dollars were funneled through Future Bank, which was based in Bahrain but set up and controlled by Iran’s Bank Saderat and Bank Melli.

The defendants are charged with multiple offences under Bahrain’s anti-money laundering  and banking laws, the state Bahrain News Agency reported.

Future Bank, which was shut down in 2016, engaged in “systemic and wide scale violations of Bahrain’s banking laws,” the Central Bank of Bahrain (CBB) said, referring to a 2018 report.

Further investigations found the bank, acting under the direction of Bank Saderat and Bank Melli, to have executed thousands of international financial transactions worth $7 billion while concealing the involvement of Iranian entities. 

Staff deliberately removed information when transferring money via the SWIFT network – an illicit practice referred to as “wire stripping”. 

Another technique involved a covert messaging service as an alternative to SWIFT, which concealed transactions from Bahraini regulators.

The years-long investigation by the CBB, the Ministry of Interior, and international regulatory experts, reviewed tens of thousands of Future Bank documents.

Rasheed Al-Maraj, the CBB governor said the complexity and magnitude of the investigations were compounded by the need to disentangle the subterfuge of Iranian-backed financing of terrorism.

“Bahrain is committed to full implementation of international standards in combatting money laundering and the financing of terrorism,” he said. “Investigating and prosecuting violations is an essential part of protecting the integrity of the international financial system.”

Bahrain’s public prosecution has referred the cases to Bahrain’s High Criminal Court, with further charges expected as investigations continue into thousands of remaining transactions.


Patients die at home as Lebanese oxygen supplies run low

Patients die at home as Lebanese oxygen supplies run low
Lebanese soldiers patrol as they try to enforce a total lockdown in the southern suburbs of Beirut as a measure against the COVID-19 pandemic. (AFP)
Updated 18 January 2021

Patients die at home as Lebanese oxygen supplies run low

Patients die at home as Lebanese oxygen supplies run low
  • Hospitals are running out of space and supplies as infections continue to rise
  • All the beds designated for COVID-19 patients in hospitals are occupied, as well as in emergency departments, and there are dozens of patients moving from one hospital to another in search of a bed

BEIRUT: Many doctors specializing in bacterial and infectious diseases expect a further jump in the number of people of infected with COVID-19 next week in Lebanon with hospitals exceeding their capacity.

On Sunday, the total number of laboratory-confirmed infections exceeded a quarter of a million people in the country.

In the first 17 days of the year 67,655 new cases were recorded, and the lockdown period is expected to be extended for at least 10 more days.

Suleiman Haroun, head of the Lebanese Syndicate of Private Hospitals, said: “The epidemiological scene in Lebanon reflects part of the reality, not all of it. The real situation will be worse yet.”

He said: “All the beds designated for COVID-19 patients in hospitals are occupied, as well as in emergency departments, and there are dozens of patients moving from one hospital to another in search of a bed. Hospitals have exceeded their capacity.”

Pulmonologist and intensive care specialist Dr. Wael Jaroush said: “I have never seen anything like what I see in the hospitals now. I never imagined that I would ever go through such an experience. There is no room for patients in the emergency departments.

“They are dying in their homes. Some of them are begging to buy oxygen generators, new or second hand.

“The price of a new one is normally $700, yet people are selling used devices for about $5,000, and some patients are forced to buy them in foreign currency, meaning that the patient’s family buy the dollar on the black market for more than LBP8,000.”

Jaroush said that patients were infected with the virus because of mixing with other people at the end of last year and in the first 10 days of January. He expected that their number would increase during Monday and Tuesday. He would wait to see if the numbers declined on Wednesday and Thursday.

He said that 10-liter oxygen bottles and smaller ones are out of stock “because of the high demand on them, either for storage due to lack of confidence in the state, or because they are not available in hospitals.”

“As a doctor, I come across patients who tell me that they bought the oxygen bottle two months ago, for example, and put it in their homes, just as they did when they resorted to storing medicines.”

He pointed out: “These oxygen bottles do not last long. A COVID-19 patient who cannot find a vacant bed in the hospital and is asked to find oxygen and stay at home needs 40 or 50 liters of oxygen. So when the 10-liter oxygen bottle runs out, the patient dies because his heart stops. This is happening now and some patients have died in their homes.”

Jaroush said: “The cardiologist Dr. Mustafa Al-Khatib suffered from COVID-19 yesterday and could not find even a chair in the emergency department. Since yesterday we doctors have been trying to find a place for him so that he can have a blood test and a scan for his lungs. This is our situation.”

On Sunday, it was announced that the Military Hospital in Beirut also exceeded its capacity. The hospital cares for military personnel and their families.

This prompted its management to take 23 rooms in a private hospital that was damaged in the Beirut port explosion last August. The Lebanese Army Works Regiment is working to make it available within days to accommodate cases that need intensive care.

In addition to the lack of capacity, there was also a lack of medical supplies.

Activists on social media circulated calls to secure oxygen bottles that are needed for patients in hospitals that are needed for patients.

The search for hospital beds has caused disputes between the Lebanese Red Cross paramedics and some hospitals.

Georges Kettaneh, Lebanese Red Cross secretary-general, said: “The Red Cross responds to all crises in the country, especially COVID-19, and from the beginning we demanded hospitals to be ready. It was expected that disputes would arise between the Red Cross and some hospitals due to the decision of the Minister of Health in the caretaker government, Hamad Hassan, to receive all cases in hospitals.”

Assem Araji, the head of parliament’s health committee, said: “Despite the sanctions that the Ministry of Health decided to impose on some private hospitals that did not respond to the request to open departments to receive patients, certain hospitals did not comply. We have reached a catastrophic stage that calls for national responsibility.”

Araji expressed his belief that “a complete lockdown for 11 days is not sufficient to limit the spread of the virus. Rather, it should be closed for three weeks, as recommended by the World Health Organization.”

Many well-known figures in Lebanon have died of the coronavirus during the past days.