Rafidain Bank’s Abu Dhabi branch hit with UAE penalties

Shafaq News – Baghdad / Abu Dhabi

The UAE Central Bank imposed “substantial” financial penalties on the Abu Dhabi branch of Iraq’s state-owned Rafidain Bank after identifying administrative and financial violations, informed sources told Shafaq News on Sunday.

The sources did not disclose the value of the fines but said regulators cited repeated compliance failures and weak management, warning that the branch could face closure if the breaches persist.

According to the sources, the violations have damaged the bank’s international standing and raised concerns among foreign partners over Iraq’s compliance framework, particularly its adherence to counterterrorism financing standards in line with UN Security Council resolutions and global financial regulations. As a result, authorities in several countries, including the UAE, have reportedly notified Iraq that they are monitoring Rafidain Bank’s overseas accounts and financial transfers.

The measures follow earlier action against the bank’s regional operations. In early October 2025, Yemen’s Minister of Information, Culture, and Tourism Moammar Al-Eryani announced the closure of Rafidain Bank’s branch in Sanaa, describing the move as part of international efforts to cut funding to the Houthi group.

In August, US Congressman Joe Wilson accused the Iraqi state-owned bank of conducting financial transactions benefiting the Houthis and warned he would seek to cut US financial support to Iraq, urging the US Treasury to sanction Rafidain Bank.

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