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