Rafidain Bank branch faces closure over irregularities

Shafaq News – Baghdad

The Abu Dhabi branch of Iraq’s state-owned Rafidain Bank is facing the prospect of shutdown after a series of administrative and financial irregularities came to light, sources familiar with the issue told Shafaq News on Monday.

According to the sources, the irregularities have raised alarms inside the bank, with concerns that the problems could erode its operations and weaken its standing abroad. They noted that the troubles extend beyond the UAE, as several Rafidain branches overseas are dealing with their own sets of violations and management issues.

Calls are growing inside Iraq’s regulatory bodies for broad inquiries to determine the scale of the breaches and identify those responsible, in an effort to protect the bank’s foreign assets and limit further financial and administrative fallout.

The latest developments follow earlier accusations from US Congressman Joe Wilson, who charged Rafidain Bank with conducting financial transactions for Yemen’s Houthi movement (Ansarallah). He claimed the bank had facilitated operations for what he labeled a “terrorist organization,” warning that he would work to block US financial support for Iraq in the upcoming appropriations bill.

Wilson also urged the US Treasury Department to impose sanctions on the bank.

Last week, Iraq added Lebanon’s Hezbollah and the Houthis to its terrorism-finance blacklist — a step that was revoked shortly afterward and triggered swift clarification from Iraqi authorities, including a statement and a document from the Central Bank of Iraq (CBI) clarifying that Baghdad’s approval applied only to individuals and entities linked to ISIS and al-Qaeda.