Iraq Arrests Rafidain Bank Officials Over Alleged $1.1 Million Embezzlement Scheme

ERBIL (Kurdistan24) – A joint force from Iraq's Integrity Commission on Thursday arrested several officials from Rafidain Bank in Diwaniyah province on allegations of corruption, currency manipulation, and the embezzlement of public funds.

According to preliminary investigation findings, the suspects allegedly tampered with the bank's cash reserves by replacing 50,000-Iraqi dinar banknotes with 1,000-dinar notes. Authorities estimate the scheme caused losses of approximately 1.6 billion Iraqi dinars (about US$1.1 million) to the public treasury.

Legal proceedings have been launched against the detained officials, while investigators continue efforts to identify other members of the alleged network and recover the missing funds.

The arrests are part of Iraq's broader push to strengthen oversight of state institutions, with authorities stressing that corruption and the misuse of public money will be met with strict legal action.

The operation comes amid Iraq's newly launched nationwide anti-corruption campaign, Operation Dawn (Sawlat al-Fajr), which was initiated on June 28, under the direction of Prime Minister Ali al-Zaidi.

The campaign has led to the arrest of dozens of senior political figures and the seizure of more than US$250 million in assets. At least 21 individuals have been officially confirmed detained, although early reports put the number as high as 47.

Among the most prominent figures targeted are Muthanna al-Samarrai, leader of the Sunni Azm Alliance, former Wasit Governor Mohammed Jamil al-Mayahi, and Ibrahim al-Sumaidaie, a senior adviser to former Prime Minister Mohammed Shia al-Sudani.

The latest arrests underscore Baghdad's intensified efforts to combat corruption and recover misappropriated public funds as part of one of Iraq's most extensive anti-graft campaigns in recent years.