A Pathological Analysis of the Role of Exchange Bureaus in the Occurrence of Foreign Exchange Crimes and Their Financial and Consequent Political Implications for Iran, with Particular Emphasis on Money Laundering

Gharhramanlo Alasti, Kazem; Mousavi Fard, Seyed  Mohammad Reza

doi:10.22034/jclc.2025.2067002.1277

A Pathological Analysis of the Role of Exchange Bureaus in the Occurrence of Foreign Exchange Crimes and Their Financial and Consequent Political Implications for Iran, with Particular Emphasis on Money Laundering

Document Type : Original Article

Authors

Kazem Gharhramanlo Alasti ¹

Seyed Mohammad Reza Mousavi Fard ²

¹ PhD student, Department of Criminal Law and Criminology, Semnan Branch, Islamic Azad University, Semnan, Iran

² Faculty Member, Department of Criminal Law and Criminology, Semnan Branch, Islamic Azad University, Semnan, Iran

10.22034/jclc.2025.2067002.1277

Abstract

In the Iranian economy, which is marked by complex financial relations and severe foreign exchange volatility, exchange bureaus play a significant role. In times of crisis, they can contribute to economic stability by regulating the market and balancing supply and demand. In practice, however, weak legal regulation and the absence of effective oversight have enabled some exchange bureaus, particularly unauthorized ones, to become suitable platforms for organized financial crimes, especially money laundering. This study addresses the central question of how the activities of exchange bureaus are related to the formation of organized financial crimes and the extent to which the regulatory system is capable of containing this process. It proceeds on the assumption that the expansion of unauthorized exchange bureaus and the existing regulatory gaps have directly contributed to the rise in foreign exchange crimes and the erosion of the country’s financial integrity.
Using a qualitative methodology and an analysis of legal documents and relevant doctrinal materials, the findings indicate that unauthorized exchange bureaus, by exploiting structural weaknesses, play an effective role in facilitating money laundering and intensifying instability in the foreign exchange market. By contrast, authorized exchange bureaus that comply with applicable regulations and maintain financial transparency can serve as a factor in preventing economic corruption. The principal regulatory challenges in this area include the lack of coordination among the responsible institutions and the absence of the technological infrastructure necessary for real-time and intelligent monitoring of financial transactions. To address these problems and reduce foreign exchange crimes, two key measures are proposed: first, the design and implementation of a national intelligent monitoring system for foreign exchange transactions; and second, the imposition of a requirement on all exchange bureaus to conduct accurate digital identity verification of their customers. The implementation of these measures can enhance the resilience of the financial system against such crimes. It is therefore necessary to adopt a preventive and forward-looking criminal policy grounded in risk analysis and adaptive regulation in the face of potential criminal activity. Such measures can provide effective means of preventing harms of this kind.

Keywords

Pathology

Exchange Bureaus

Money Laundering

Foreign Exchange Disorders

Subjects

Theoretical and Applied Criminology

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