Legal Newsletter



In our newsletter, you will find the latest news and comments on legal and trade-related developments in various areas of Iranian commercial and financial law and practice.
 New Iranian Penal Procedure Code Now In Force
 Significant Increase of Iran’s contribution in ITFC
4 July 2015

New Iranian Penal Procedure Code Now In Force 4 July 2015-The new 570- article Iranian Penal Procedure Code, approved on 14/12/1392 (5 March 2014) came into effect on 1 /4/ 1394 (22 June 2015) after a long period in limbo. In comparison to its predecessor regulations, the code reads as progressive in terms of protection of the human rights of accused persons and maintaining accurate legal proceedings. Excerpts follow:

Art.7- In all stages of penal prosecution, observance of the rights of citizenship as stipulated in the “Law of Honoring Legitimate Freedoms and Safeguarding Rights of Citizenship" approved on 15/2/1382 (5 May 2003) shall be binding upon all judicial authorities, law enforcers and any other persons involved in the legal proceeding….

Art.14- The plaintiff shall be entitled to claim for redress of all material and immaterial losses and damages and possible lost benefits caused by the crime…

Art.17- The court is bound to issue its judgment on the damages inflicted upon the plaintiff in its ruling on the penal aspect of the case….

Art.18- In the event that the conclusive penal ruling has substantive impact on the civil claim it must be honored by the court which is considering the civil matter and the damages.

Note of Art.19- In the instances that the ruling is made for payment of the price of an object, the value at the time of enforcement of the judgment shall prevail.

Art.25- At the discretion of the Head of Judiciary, special prosecutors' offices such as the prosecutor's office for handling the offenses of government employees, security offenses, offenses relating to medical and pharmaceutical affairs, computer, economic and citizenship rights shall be formed under the supervision of the city’s Public Prosecutor's Office.

Art.38- The law enforcers are bound to inform the plaintiff of his/her right for asking for redress of damages and having access to consultancy services and other types of judicial assistance.

Art.42- Interrogation and investigation of women and immature individuals shall be undertaken by educated law enforcers with the observance of religious ethics.

Art.48- Upon being taken in custody, the accused can ask for the presence of his/her lawyer. The lawyer, while honoring the secrecy of the investigations and statements, shall visit the person in custody. At the end of the visit with the accused, which should not exceed one hour, the lawyer shall prepare his/her remarks in writing to be kept in the related file.

Art.50- The person in custody has the right to inform his/her family or acquaintances by phone or any other available means of being in custody and the law enforcers are bound to provide the required assistance in this respect….

Art.52- As soon as a person is taken into custody, the law enforcers are bound to inform the accused of his/her rights foreseen in this law and provide him/her with the same in writing against a receipt which will be added to the file.

Art.60- During interrogations, bullying or coercing the accused, using insulting language, inciting and deceiving questions or questions unrelated to the object of the charge, shall be forbidden and the statements of the accused in response to such questions and also the statements made under duress and coercion shall not be considered valid. The date, time and duration of interrogation must be cited in the interrogation papers and the papers must be signed or fingerprinted by the accused.  

Art.66- The non-governmental organizations whose articles of association are related to protecting infants and minors, women, sick people, physically and mentally handicapped persons, the environment, natural resources, cultural heritage, public hygiene, and safeguarding the rights of citizenship, are authorized to declare commission of offenses in the said area, attend all the stages of litigation and object to the decisions of the judicial authorities.

Art. 82- …. (in case of some offenses) For reaching a compromise between the parties, the judge may, upon the agreement of the parties, refer the case to the Dispute Settlement Council or persons or firms for mediation. The duration of the mediation process shall not exceed three months…

Art.107- The plaintiff can ask the investigating judge for compensation of damages and losses. If the application is based on acceptable reasons, the investigating judge shall issue a writ of attachment…

Art.114- Preventing the continuation of the whole or part of the services or production in areas such as trade, agriculture, workshops, factories, commercial companies and cooperatives and the like is forbidden, unless in cases where there are reasonable circumstances and supporting causes indicating that continuation of the activity will result in criminal dealings harmful to the health and security of the society or public order. In such instances, the investigating judge is bound to prevent that particular part of the activity and cite the reasons in his decision after informing the public prosecutor. Such a decision can be appealed in the criminal court within five days after notification of the decision.

Art.176- The Judiciary Power is authorized to delegate the service of judicial papers to the private sector….

Art. 200- For the plaintiff, claimant, accused person, witness or informed person who cannot speak the Farsi language, the judge shall appoint a reliable translator from among the certified translators and in case of the inaccessibility of a certified translator, another reliable translator will be nominated….  

Art.255- The people who are detained for any reason during the preliminary investigation and prosecution and subsequently their innocence or non-commission of a crime should be declared by the judicial authorities may claim from the government redress of their damages…

Art.316- With respect to accusations made against people committing crimes against Iran outside the sovereign territory of the Islamic Republic of Iran and in accordance with the law the Iranian courts have jurisdiction to handle these cases, if such persons are Iranian nationals and they are detained in Iran, they will be tried in the court of the jurisdiction they have been arrested in. If they are foreign nationals, their case will be heard in the court of Tehran.

 Art.385- Each party is entitled to appoint a maximum of three lawyers ….


1 January 2015
Significant Increase of Iran’s contribution in ITFC 1 January 2015- Iran Council of Ministers has resolved to increase its contribution in the International Islamic Trade Finance Corporation (ITFC) from the current USD 1.92m to USD 192m. 

The related decree No. H49361T/116887 dated 8/10/1393 (29 December 2014) for this considerable   increase was published in the Official Gazette today.

The decision stipulates that the Central Bank of the Islamic Republic of Iran (CBI) will arrange payment of USD 100m and register that in its books as the Iranian government's share in the ITFC.

ITFC is an autonomous entity within the Islamic Development Bank Group created with the purpose of advancing trade to improve the economic condition and livelihood of people across the Muslim world.

State members of ITFC are: Saudi Arabia, Libya, Iran, Egypt, Turkey, United Arab Emirates, Kuwait, Pakistan, Algeria and Indonesia.