Recovery of Non-Performing Loans (NPL) for Bank Facilities Used for Non-Intended Purposes Through Anti-Money Laundering Institutions

Banking facilities play a crucial role in economic development; however, their diversion from intended purposes and misuse in non-target areas pose significant challenges to the banking system. The Central Bank's authority, as per Clause (P) of Article۴۲ of the new Central Bank Law, to withdraw funds belonging to debtors from third-party accounts can serve as an effective tool for recovering claims arising from such facilities. Nevertheless, the exercise of this authority is accompanied by numerous legal and operational challenges, including conflicts with the rights of third parties and difficulties in proving the actual ownership of funds. Using a descriptive-analytical approach, this article seeks to address the central question of how anti-money laundering laws and institutions can be utilized to trace and identify the purposes of funds from these facilities in third-party accounts, as well as the legal challenges banks face in recovering claims from such sources. In this context, the role of anti-money laundering laws and institutions in identifying and tracking funds used illegally or inappropriately is analyzed. The Financial Intelligence Unit (FIU) of Iran and the Central Bank, as the primary institutions in this field, can assist in identifying and recovering claims through legal mechanisms and inter-organizational coordination. Ultimately, the use of the right to withdraw from third-party accounts can enhance the recovery of banking claims. However, it requires safeguarding the rights of third parties, establishing transparent and fair mechanisms, developing clear regulations, strengthening inter-institutional cooperation, implementing advanced ownership verification systems, and educating stakeholders.