Baghdad (IraqiNews.com) – Sources familiar with the matter said on Sunday that the UAE Central Bank has imposed substantial financial penalties on the Abu Dhabi branch of Iraq’s state-owned Rafidain Bank, following the identification of financial and administrative irregularities.
The measures come after regulatory reviews flagged weak internal controls and management shortcomings, sparking concerns over the branch’s future operations. While the exact size of the fines has not been made public, sources warned that continued non-compliance could place the branch at risk of closure.
Growing scrutiny of overseas operations
According to the sources, scrutiny is not limited to the Abu Dhabi branch alone. Several Rafidain Bank branches outside Iraq are reportedly facing increased regulatory pressure due to repeated violations and inadequate oversight.
They noted that failure to address earlier observations has negatively affected the bank’s standing with international partners, particularly in jurisdictions that apply strict financial compliance standards.
Compliance doubts raise international concerns
Regulatory observations recorded in multiple countries have contributed to broader doubts about the stability of compliance mechanisms within some of Rafidain Bank’s foreign operations.
These concerns center on adherence to global frameworks related to financial transparency, transaction monitoring, and counter-terrorism financing, areas closely monitored by international regulators.
Sources indicated that some host countries have intensified monitoring of financial transfers conducted by Rafidain Bank branches, including those operating in the Gulf region.
Financial experts stressed the need for swift corrective measures to prevent further escalation, warning that reputational damage could lead to operational restrictions or market exits if not addressed.
They emphasized that restoring confidence requires internal investigations, accountability, and administrative reform, particularly within overseas branches that operate under heightened regulatory scrutiny.
