Bahrain compelled by court to pay damages to Iran

2021-11-24 17:11:12
Bahrain compelled by court to pay damages to Iran

Bahrain has been ordered by the Permanent Court of Arbitration in The Hague to pay over 200 million euros in damages plus costs to two Iranian banks for the unlawful expropriation of their banking venture in Manama in an act of "political retribution".

Iran’s largest lenders Bank Melli and Bank Saderat had sued the tiny Persian Gulf country before the international arbitration court in the Netherlands for confiscating nearly $1.3 billion worth of Iranian funds.

The funds belonged to Future Bank established as a joint venture between Bahrain’s Ahli United Bank and the two Iranian lenders in 2004 when Bahraini leaders were seeking to mend strained relations with their vastly larger neighbor to the north.

In January 2016, however, Bahrain's central bank said it was taking steps to close down Future Bank after Manama cut diplomatic ties with Tehran, following its neighbor Saudi Arabia in severing relations with the Islamic Republic.

In July this year, Bahrain's top court upheld a money-laundering verdict against Future Bank, the Central Bank of Iran and other Iranian banks.

The ruling, issued in April 2018, included jail terms of up to 10 years for Future Bank officials and confiscation of funds.

Tags: iran bahrain bank
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