Latest news with #RafidainBank
Iraq Business
2 days ago
- Business
- Iraq Business
Iraq announces Major Banking Sector Overhaul
By Padraig O'Hannelly. Iraq is embarking on a comprehensive restructuring of its banking sector with the assistance of leading international consultancy firms, according to Dr Salih Salman, Advisor to the Iraqi Prime Minister, speaking at the Iraq Britain Business Council (IBBC) Spring Conference in London on Tuesday. The Iraqi government has appointed Ernst & Young to restructure six of the country's seven state-owned banks, including the Industrial Bank, Real Estate Bank, Rafidain Bank, and Rasheed Bank. The Trade Bank of Iraq (TBI) has separately engaged K2i and KPMG to help restructure its internal and external operations to meet international standards. Dr Salman revealed that Rafidain Bank, Iraq's largest state-owned institution, will be reincarnated as the First Rafidain Bank with government participation reduced to less than 24 per cent. The remaining shares will be offered to private banks and international investors. The restructuring plan is expected to be finalised and approved by the Iraqi government by the end of the year. The private banking sector is also undergoing reform following a contract signed between the Central Bank of Iraq (CBI) and Oliver Wyman. This two-to-three-year project will result in recommendations for private banks to either exit the sector, comply with international standards, or merge with other institutions. Iraq has made significant progress in electronic payment systems adoption, with financial inclusion rising from less than 10 percent in 2018-2019 to approximately 40 percent currently. The number of debit and credit cards has reached 60,000-70,000, whilst bank accounts have grown to 22-23 million. From June 2025, all government payments will be made electronically, with cash payments prohibited across government institutions. The Iraqi government has launched awareness campaigns to encourage public adoption of electronic payment systems, moving away from the traditional cash-based culture. The government has also introduced the Riyada programme, operated in partnership with the Central Bank of Iraq, to provide financing and training for small and medium enterprises. The initiative offers a registration platform where participants can access training and potential financing opportunities. Dr Salman emphasised that Iraq remains open to foreign investment and international consultancy services across all sectors, including legal, financial, accounting, auditing, and compliance services. The reforms aim to integrate Iraqi banks into the global financial system after decades of isolation due to sanctions and frozen assets. Since November 2022, all bank transfers in Iraq have been processed through a Central Bank platform in cooperation with the Federal Reserve of the United States, marking Iraq's re-entry into global financial systems. The country now works with approximately 30 overseas banks, though challenges remain in opening international banking relationships. The comprehensive banking reforms represent a significant shift towards international standards and greater private sector participation in Iraq's financial sector. (Picture credit: IBBC)
Shafaq News
07-05-2025
- Business
- Shafaq News
Iraq's digital leap: E-Payments surge for government
Shafaq News/ Rafidain Bank reported a sharp increase in electronic payment settlements for government institutions in early 2025. In a statement on Wednesday, the bank revealed that total settlements reached 2.65 trillion Iraqi dinars (about $2B) in the first four months of the year, up from 772 billion dinars during the same period in 2024, marking a 244% year-on-year growth. This surge, according to the statement, was driven by the expansion of government entities adopting the e-collection system, which grew from 1,395 departments in March 2024 to 1,808 by March 2025, the statement said. April 2025 alone accounted for 654 billion dinars, the highest monthly total to date—more than double the 314 billion dinars posted in April last year. Rafidain noted that the increase reflects rising trust in its digital services and greater efficiency across public-sector transactions. The bank said the performance aligns with national goals to modernize financial infrastructure, enhance revenue collection, and strengthen transparency and governance in public finance.
Iraq Business
05-05-2025
- Business
- Iraq Business
Iraqi PM directs Banks to Accelerate Reforms
By John Lee. Prime Minister Mohammed Shia Al-Sudani chaired a high-level meeting with the heads of Iraqi banks on Monday, reaffirming his government's commitment to banking reform as a pillar of broader economic revitalisation. He directed all banks to simplify procedures, embrace modern technologies, and encourage public confidence by stimulating deposits. The Prime Minister announced that Rafidain Bank will soon relaunch with a new strategy in partnership with reputable international banks. He also confirmed that private auditing firms have been contracted to assess all banks as part of a comprehensive reform programme. Al-Sudani called for a roadmap to strengthen the private banking sector, which he described as vital to Iraq's development, and stressed that the state would increasingly play a regulatory rather than interventionist role. He urged banks to invest in development projects, seek international partnerships, and channel import-related spending into local production to support domestic industry. Bank executives welcomed the government's reform agenda and reported significant progress, including a rise in electronic payments from 1.7 trillion dinars in 2020 to 21 trillion dinars in 2024. They confirmed support for the Oliver Wyman bank restructuring plan and offered to assist in domiciling private-sector salaries. (Source: Media Office of the Prime Minister)
Shafaq News
11-04-2025
- Business
- Shafaq News
Iraq's fight against money laundering: Rafidain launches new service
Shafaq News/ On Friday, Iraq's Rafidain Bank introduced its new online banking service, OBDX (Online Banking Digital Experience), along with the activation of the Anti-Money Laundering (AML) and GOAML systems. In line with this service, already successfully implemented by several government entities, Rafidain Bank's AML and GOAML systems will monitor and analyze transactions to ensure they comply with global regulations and prevent illegal activities, according to a statement from the bank. Key Features of the OBDX Service, Backed by Compliance Systems 1. Enhanced Security: Integrated compliance systems ensure full adherence to international standards, safeguarding the security of financial transactions. 2. Global Compliance: The bank guarantees the highest levels of transparency and compliance with international anti-money laundering and terrorism financing laws. 3. Ease of Access: Government entities can securely manage transactions online, eliminating the need to visit physical branches.
Iraqi News
31-03-2025
- Business
- Iraqi News
Al-Rafidain Bank Director-General: Financial Technology Will Shape Iraq's Banking Sector
Baghdad – INA The Director General of Rafidain Bank, Ali Al-Fatlawi, emphasized that the bank has undergone a significant transformation in recent years, positioning itself as a cornerstone of Iraq's modern banking sector through the adoption of financial technology, the promotion of financial inclusion, and adherence to international standards of integrity and compliance. A Holistic Vision for Success Speaking to the Iraqi News Agency (INA), Al-Fatlawi stated, 'Success is not merely the result of administrative decisions, but rather a comprehensive vision based on investing in human capital, forging strategic partnerships, and enhancing banking services in line with the latest global standards.' Investing in Human Capital: The Key to Growth Al-Fatlawi stressed that no financial institution can achieve sustainable success without a skilled workforce. 'Developing our employees has been a top priority, with substantial budgets allocated for training. We have sent staff to educational programs both inside and outside Iraq and partnered with the American University of Baghdad to deliver advanced programs in banking management, financial risk, and compliance.' Strengthening Financial Integrity and Compliance Al-Fatlawi highlighted the bank's commitment to financial integrity, stating that it has adopted advanced anti-money laundering and counter-terrorism financing systems, including the UN-backed goAML (Anti-Money-Laundering System). Additionally, Rafidain Bank has collaborated with global firm K2 to enhance compliance frameworks. 'These steps have strengthened our credibility with international regulatory and banking institutions and improved our position in the financial market,' he said. Financial Inclusion for a More Stable Economy He underscored the importance of financial inclusion, describing it as an economic necessity rather than an option. 'We have launched a dedicated team to develop banking initiatives and played a key role in streamlining electronic payment revenues for most government institutions, reducing cash dependency. We also introduced digital payment services that enable employees and retirees to access their entitlements seamlessly.' Financial Technology: The Future of Rafidain Bank Al-Fatlawi announced the launch of ATM services for the first time, alongside a new savings card that allows customers to invest their funds efficiently. 'We are also in the process of introducing credit cards, facilitating financial transactions both inside and outside Iraq, positioning Rafidain Bank among digitally advanced institutions,' he confirmed Strategic Partnerships to Enhance Banking Capabilities He pointed to partnerships with global entities such as Ernst & Young (EY) for banking governance development and K2 for financial compliance. 'These collaborations have boosted our operational efficiency and aligned us more closely with international banking standards.' A More Advanced Banking Future Al-Fatlawi concluded that Rafidain Bank is entering a new phase of development and influence within Iraq's financial sector. 'With the continued rollout of digital services, the expansion of financial inclusion, and the strengthening of global partnerships, we aspire to make Rafidain Bank a model for banking excellence in Iraq and the region,'he further noted.
