What Is Embezzlement and How Is It Different from Breach of Trust in Iranian Law?

Introduction

In recent years, terms like embezzlement, breach of trust, and fraud have frequently appeared in Iranian news headlines and court cases. But what exactly is embezzlement? Is it the same as breach of trust? Can anyone commit it?

In this article, we clearly explain:

What constitutes embezzlement under Iranian law

Who can be held accountable

How it differs from breach of trust

What the legal penalties are

Legal Definition of Embezzlement

Under Article 5 of the Law on Aggravated Punishment for Bribery, Embezzlement, and Fraud:

“Any employee of governmental institutions, organizations, public or revolutionary foundations, municipalities, or any state-affiliated body who misappropriates or unlawfully takes funds, assets, or documents entrusted to them by virtue of their position shall be guilty of embezzlement.”

Legal Conditions for Embezzlement

To classify a case as embezzlement, all of the following conditions must be met:

The offender must be a government employee – Private individuals cannot commit embezzlement, even if they have access to public funds.

The property must be in their custody due to their job – For example, a cashier handling government payments.

The act must involve unlawful appropriation – The person uses the funds for personal gain without permission.

Penalties for Embezzlement

According to Article 5 of the same law:

In cases involving forgery, conspiracy, or repeated misconduct, the penalties may be more severe.

Difference Between Embezzlement and Breach of Trust

All embezzlement involves breach of trust, but not all breaches of trust are embezzlement.