Iraq uncovers 543 million dinar loan fraud scheme at Babylon state bank branch

BAGHDAD, Iraq — Iraq's Federal Commission of Integrity said it has uncovered an 11-person network accused of defrauding a State Bank branch in Babylon province through forged loan applications. The commission said six bank employees and five intermediaries manipulated 56 loan files, using forged title deeds and tampered payment receipts to remove liens and obtain new credit under Central Bank of Iraq initiatives. Investigators who visited the branch found irregularities in deposit-loan applications and Central Bank-backed financing requests, including altered property documents and manipulated sales records, according to the commission. The suspects are accused of lifting encumbrances on real estate using forged receipts, then resubmitting the same titles for new loans by presenting them as though prior installments were unpaid. The commission also reported unlawful exemptions and tampering with payment slips. Arrest warrants were issued for all 11 suspects; five bank employees and two intermediaries have been detained, while efforts to apprehend the remaining suspects continue. Raids yielded bank records, official seals, gold bars and cash. The commission estimated the damage to public funds at 543.168 million dinar and said the investigation remains open.