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Al-Madina Bank scandal

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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][2] 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.[9]

History

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

Adnan Abu Ayyash bought the bank in 1986,[3] 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

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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

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  • Dr. Adnan Abu Ayyash - Honorary Chairman/General Manager
  • Sheikh Ibrahim Abu Ayyash - Chairman/General Manager
  • Mr. Michel El-Helou - Board Member[10]

References

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  1. ^ a b Prothero, Mitch (2005-10-27). "The Money Scandal Behind the Hariri Assassination". Time. ISSN 0040-781X. Retrieved 2021-06-16.
  2. ^ a b "Report: Al-Madina Bank file in the spotlight again". LBCI Lebanon. Retrieved 2021-06-16.
  3. ^ a b "Al-Madina Bank owners accused of stealing millions from Saudi account". Al Bawaba. Retrieved 2021-06-16.
  4. ^ Strasburg, Jenny (2012-08-01). "Lebanese Bank Case Tests U.S. Privacy Law". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-06-16.
  5. ^ "Douze ans plus tard, le mystère de la banque al-Madina reste entier". L'Orient-Le Jour. 2015-04-27. Retrieved 2021-06-16.
  6. ^ "Al-Madina Bank scandal winds down". www.dailystar.com.lb. Retrieved 2021-06-16.
  7. ^ "Madi Receives Names of 411 Suspects Involved in al-Madina Bank Scandal". Naharnet. April 8, 2013. Retrieved 2021-06-16.
  8. ^ "Beirut First Investigative Judge Wraps Up Probe in al-Madina Bank Case". Naharnet. June 13, 2013. Retrieved 2021-06-16.
  9. ^ a b "ملف بنك المدينة إلى الضوء من جديد". LBCI Lebanon (in Arabic). Retrieved 2021-06-16.
  10. ^ a b c "More than a banking scandal?". calert.info. Retrieved 2021-06-17.
  11. ^ "Al-Madina Bank owners accused of stealing millions from Saudi account". Al Bawaba. Retrieved 2021-06-17.
  12. ^ April 8, 2013. "Madi Receives Names of 411 Suspects Involved in al-Madina Bank Scandal". Naharnet. Retrieved 2021-06-17.{{cite web}}: CS1 maint: numeric names: authors list (link)
  13. ^ "Central Bank to Investigate Status of 135 Suspected of Links to al-Madina Bank". Naharnet. May 13, 2013. Retrieved 2021-06-17.
  14. ^ a b "Beirut First Investigative Judge Wraps Up Probe in al-Madina Bank Case". Naharnet. June 13, 2013. Retrieved 2021-06-17.
  15. ^ Rami (2016-04-15). "Kawalis Al-Madina - The Real Story Of Al-Madina Bank Scandal". +961. Retrieved 2021-06-17.
  16. ^ a b Strasburg, Jenny (2012-08-01). "Lebanese Bank Case Tests U.S. Privacy Law". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-06-17.
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