The UAE imposes “heavy” financial penalties on Iraq’s Rafidain Bank
The UAE imposes “heavy” financial penalties on Iraq’s Rafidain Bank
2025-12-14 00:58
Shafaq News – Baghdad / Abu Dhabi
Informed sources revealed on Sunday that financial and administrative violations at the Rafidain Bank branch in Abu Dhabi, in addition to monitoring indicators of mismanagement, prompted the UAE Central Bank to impose “large financial” fines on the branch, warning that these measures could end with the complete closure of the branch.
The sources did not disclose the size of the fines imposed by the UAE Central Bank on the bank’s branch in Abu Dhabi, but they told Shafaq News Agency that a number of the bank’s branches abroad are also facing the risk of closure as a result of repeated violations and weak administrative follow-up by the bank, adding that many warnings were issued during previous periods calling for addressing these violations before reaching the stage of closure, but they did not receive a response from senior management.
She stressed that continuing to ignore these warnings weakens the bank’s position and its international reputation, and necessitates urgent intervention to prevent the loss of more branches outside Iraq, as well as launching an immediate investigation into the matter and holding those responsible accountable.
The sources explained that the branches of Rafidain Bank in a number of Arab and foreign countries have entered a sensitive stage in which recorded regulatory observations intersect, which has created a state of doubt among international partners regarding the stability of the Iraqi compliance system and its ability to separate internal political calculations from the requirements of compliance with anti-terrorism financing standards in line with Security Council resolutions and the standards in force in the global financial system.
The sources pointed out that some countries have noted the work of the Rafidain Bank branches due to suspicions about the bank’s transactions and financial transfers that took place in recent years, noting that these countries have informed Iraq to monitor the transfers and financial accounts in the Rafidain Bank branches abroad, including the UAE.
Informed sources stated on December 8 that the branch of the Iraqi state-owned Rafidain Bank in the UAE capital, Abu Dhabi, is facing the risk of closure due to administrative and financial problems and violations that were detected during the past period.
The sources told Shafaq News Agency at the time that “there are concerns about the repercussions of these continued violations on the bank’s operations and its external reputation.”
She added that the problems are not limited to the Abu Dhabi branch alone, but extend to a number of the bank’s branches abroad, which also suffer from varying administrative and financial violations.
The sources also indicated that regulatory authorities are required to open extensive investigations to determine the extent of the violations and hold those responsible accountable in order to protect the bank’s funds and prevent the exacerbation of financial and administrative crises in its foreign branches.
The Yemeni Minister of Information, Culture and Tourism, Muammar Al-Iryani, announced at the beginning of October 2025 the closure of the Iraqi state-owned Rafidain Bank branches in Sana’a.
Al-Iryani said in a post on the “X” website that “the decision by the Iraqi Rafidain Bank to close its branch in Sana’a and end its financial and banking activity is a step in the right direction, and a direct result of international efforts aimed at drying up the sources of funding for the Houthi group.”
He pointed out that this measure “reflects a positive response to governmental warnings and American and international pressure, and sends a clear message to the rest of the regional and international financial institutions, about the need to review their activities, and to ensure that they do not fall into the circle of exploitation or employment to serve the agendas of the Iranian regime and its terrorist arms in the region.”
Al-Iryani stressed that “the Houthis have turned the financial and banking institutions operating in the areas under their control into tools for plundering the money of Yemenis and financing their cross-border terrorist activities.”
Last August, US Congressman Joe Wilson accused the state-owned Rafidain Bank of conducting financial transactions with the Houthi group in Yemen, threatening to cut off US funding to Iraq as a result.
Wilson wrote in a post on the “X-formerly Twitter” platform that “the Iraqi state-owned Rafidain Bank is conducting financial transactions on behalf of the Houthis, a terrorist organization,” adding, “We have a name for these countries: state sponsors of terrorism.”
He added, “I will work to cut off funding to Iraq during the next appropriations bill” in the US budget. Wilson also urged the US Treasury Department to “sanction” Rafidain Bank.
shafaq.com
