Slovenia Rocked by Iran Related Money Laundering Scandal

October 2, 2017

Author: 

Samuel White and Sarantis Michalopoulos

Publication: 

Euractiv

Slovenia’s state prosecutor is investigating claims that state-owned Nova Ljubljanska Banka (NLB) laundered nearly €1 billion from Iran between 2008 and 2010, in violation of a money-laundering and terrorist financing rules. The allegations center around Iraj Farrokhzadeh, a dual Iranian-British citizen, who opened accounts at NLB in December 2008 for the company Farrokh Ltd. Farrokhzadeh then used the accounts to move money for Iran’s Export Development Bank (EDBI), which was blacklisted by the European Union for facilitating payments to front companies run by Iran’s defense ministry and for helping U.N.-designated entities evade sanctions. Farrokhzadeh transferred his operations from NLB to Russian banks in December 2010.