Iraq’s Rafidain Bank Signs U.S. Partnership Amid Accusations Over Houthi Transactions

Peregraf

Iraq’s state-owned Rafidain Bank has signed a professional partnership agreement with U.S.-based K2 Integrity, a global leader in financial and regulatory consulting, according to the Iraqi Embassy in Washington. The deal, implemented under Iraqi Cabinet Resolution No. 23274 of 2023, aims to strengthen Iraq’s financial sector through measures such as combating money laundering, implementing international compliance standards, and enhancing regulatory infrastructure for Iraqi banks.

The agreement was signed at the Iraqi Embassy in Washington, with Iraqi officials describing it as a step to boost global confidence in Iraq’s banking reforms and expand cooperation with international correspondent banks.

The signing comes as Rafidain Bank faces allegations from U.S. Congressman Joe Wilson and reports from FOX Business claiming the institution processed payments for Yemen’s Houthi movement, designated by the U.S. as a terrorist organization. Wilson called for sanctions against the bank and pledged to seek cuts in U.S. funding to Iraq in upcoming appropriations legislation.

FOX Business, citing minutes from an April 29 meeting between senior U.S. Treasury officials and Iraq’s Foreign Minister Fuad Hussein, reported that Washington urged Iraq to ensure Rafidain Bank halts dealings with the Houthis and relocate its Yemen branch from Houthi-controlled Sanaa to the southern city of Aden, under the internationally recognized Yemeni government.

According to the reported meeting notes, Hussein said Iraq engages with Yemen’s recognized government and asserted that the Houthis do not have access to Iraq’s financial system, pledging to personally verify the matter.