Comparative Law Review

Comparative Law Review

Quasi-Criminal Competence of Central Bank in Response to Banking Violations: A Comparative Study of Central Bank Act of Iran and US Federal Banking Laws

Document Type : Research Paper

Authors
Mahdi Sabooripour 1
Zahra Alanchari 2
1 Assistant Prof., Department of Criminal and Criminology Law, Faculty of Law, Shahid Beheshti University, Tehran, Iran
2 M. A. In Criminal and Criminology Law, Faculty of Law, Shahid Beheshti University,Tehran, Iran
10.22059/jcl.2025.392599.634743
Abstract
In recent decades, alongside the increasing complexity and specialization of issues on one the hand and the growing number of matters requiring government oversight and control on the other hand, the quasi-criminal jurisdiction of various regulatory bodies have expanded. One such area is the country's monetary and banking system, which has undergone significant changes with the enactment of the Central Bank of the Islamic Republic of Iran Law in 2023, introducing a novel approach called banking regulation.  This article employs a descriptive-analytical method, examining the new Central Bank Law on one hand and U.S. federal laws on the other, to normatively, procedurally, and structurally analyze the quasi-criminal jurisdiction of banking regulation in these two countries. The primary question of this research is what are the most significant similarities and differences between the banking regulatory systems in Iran and the United States. In this regard, the expansion of violations falling under the jurisdiction of the Disciplinary Board, along with addressing some criticisms of its structure and procedures, are among the most important aspects of Iran's recently enacted Central Bank Law. These are compared with the jurisdictions of U.S. banking regulators, particularly their formal enforcement actions. The findings of this study indicate that, in the U.S. legal system, the central concept in banking regulation is determining "unsafe and unsound" practices-a fluid concept whose specifics are clarified through practical enforcement. In terms of regulatory responses, U.S. regulators have broader authority, as their jurisdiction can extend to a wider range of individuals compared to their Iranian counterparts. Additionally, transparency in handling violations through public proceedings and faster processes are among the strengths of the U.S. banking regulatory system, which could serve as a model for policymakers and implementers in Iran's banking system.
Keywords
Banking Violations
Central bank
Disciplinary Board
Enforcement actions
Federal Reserve
Subjects

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Comparative Law Review
Volume 16, Issue 2 - Serial Number 32
Autumn & Winter 2025
December 2025
Pages 525-547