Sources say the UAE Central Bank has hit the Abu Dhabi branch of Iraq’s state-owned Rafidain Bank with heavy fines after uncovering financial and administrative problems.
The penalties come after regulators found weak internal controls and poor management, raising questions about the branch’s ability to operate smoothly. While the exact fines haven’t been made public, sources warn that ongoing issues could even put the branch at risk of closure.
Overseas branches under the spotlight
This scrutiny isn’t just about Abu Dhabi. Other Rafidain Bank branches outside Iraq are also facing tighter regulatory pressure because of repeated violations and lack of proper oversight.
Experts say failing to fix these issues has hurt the bank’s reputation with international partners, especially in countries with strict financial compliance rules.
Compliance concerns and international pressure
Regulators in multiple countries have raised concerns about Rafidain Bank’s adherence to global standards for financial transparency, transaction monitoring, and anti-terrorism financing. Some Gulf countries are reportedly monitoring the bank’s transfers more closely because of these doubts.
Financial specialists stress that the bank needs to act quickly. They warn that continued non-compliance could harm its reputation, lead to restrictions, or even force some branches to shut down.
The solution, experts say, lies in internal investigations, holding the right people accountable, and reforming management—especially in overseas branches facing heightened regulatory scrutiny.
