Al-Madina Bank scandal explained

Al-Madina Bank (Arabic: بنك المدينة) was a Lebanese bank that was seized by the Banque du Liban and closed completely in 2003[1] [2] because of its mysterious case of suspicion in money laundering, corruption and fraud.[3] The main figure in the scandal was Rana Koleilat,[4] but also Adnan Abu Ayyash, the bank owner, and his brother Ibrahim.[5] [6] [7] As many as 135 people may have been involved in the corruption case,[8] included political, military, financial and legal figures.[9]

The total amount of money lost from the bank was 1.65 billion US dollars.

History

Bank Al-Madina began operating in 1982, with its headquarters in Hamra.[10]

Adnan Abu Ayyash bought the bank in 1986, and was its main shareholder, along with his brother Ibrahim.[11]

The bank expanded to 18 branches in Lebanon throughout the 90's.[10]

Scandal

A report was filed accusing the bank of embezzling millions of dollars and writing bad checks, and 411 people were suspected of receiving suspicious funds from the bank.[12]

In 2003, a committee was formed to investigate the bank's millions of dollars of fraud to investigate money laundering.[13]

Rana Koleilat was accused of playing a key role in the fraud.[14]

Reports have said that the amount missing money from Al-Madina and its subsidiary United Credit Bank (UCB) could total as much as euro 1.0 billion.[14]

The bank collapsed in 2003.[15] [16]

Missing funds from the bank were linked to the assassination of the Rafik Hariri[1] [16] in 2005.

Bank Managers

References

  1. Prothero. Mitch. 2005-10-27. The Money Scandal Behind the Hariri Assassination. en-US. Time. 2021-06-16. 0040-781X.
  2. Web site: Report: Al-Madina Bank file in the spotlight again. 2021-06-16. LBCI Lebanon. en.
  3. Web site: Al-Madina Bank owners accused of stealing millions from Saudi account. 2021-06-16. Al Bawaba. en.
  4. News: Strasburg. Jenny. 2012-08-01. Lebanese Bank Case Tests U.S. Privacy Law. en-US. Wall Street Journal. 2021-06-16. 0099-9660.
  5. Web site: 2015-04-27. Douze ans plus tard, le mystère de la banque al-Madina reste entier. 2021-06-16. L'Orient-Le Jour.
  6. Web site: Al-Madina Bank scandal winds down. 2021-06-16. www.dailystar.com.lb.
  7. Web site: April 8, 2013. Madi Receives Names of 411 Suspects Involved in al-Madina Bank Scandal. 2021-06-16. Naharnet.
  8. Web site: June 13, 2013. Beirut First Investigative Judge Wraps Up Probe in al-Madina Bank Case. 2021-06-16. Naharnet.
  9. Web site: ملف بنك المدينة إلى الضوء من جديد. 2021-06-16. LBCI Lebanon. ar.
  10. Web site: More than a banking scandal?. 2021-06-17. calert.info.
  11. Web site: Al-Madina Bank owners accused of stealing millions from Saudi account. 2021-06-17. Al Bawaba. en.
  12. Web site: April 8, 2013. Madi Receives Names of 411 Suspects Involved in al-Madina Bank Scandal. 2021-06-17. Naharnet.
  13. Web site: May 13, 2013. Central Bank to Investigate Status of 135 Suspected of Links to al-Madina Bank. 2021-06-17. Naharnet.
  14. Web site: June 13, 2013. Beirut First Investigative Judge Wraps Up Probe in al-Madina Bank Case. 2021-06-17. Naharnet.
  15. Web site: Rami. 2016-04-15. Kawalis Al-Madina - The Real Story Of Al-Madina Bank Scandal. 2021-06-17. +961. en-US.
  16. News: Strasburg. Jenny. 2012-08-01. Lebanese Bank Case Tests U.S. Privacy Law. en-US. Wall Street Journal. 2021-06-17. 0099-9660.

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