Al-Taif Islamic Bank placed under Central Bank of Iraq guardianship over undisclosed violations (2026)
On 2 September 2026 the Central Bank of Iraq placed Al-Taif Islamic Bank for Investment and Finance, a private Baghdad bank, under state guardianship, appointing a custodian for an 18-month term. The central bank's public notices describe the trigger only as 'serious violations that affected its financial position and depositors' funds', without detailing the underlying conduct. The bank had already been barred from US-dollar transactions since a July 2023 enforcement action (after a reported US Treasury/Federal Reserve Bank of New York concern). The ledger of the dollar auction records roughly $14.3m for the bank across 15 sessions before the ban. The guardianship came the same week Iraqi authorities arrested several former Rafidain Bank managers on corruption suspicions and amid intensifying US pressure on Iraqi banks over dollar transfers to Iran-linked actors. Depositors protested outside branches in Baghdad and Basra, unable to access funds; the central bank issued a follow-up statement on 8 September 2026 seeking to reassure them that their rights were protected.
- Period
- From July 2023 to September 2026
- Sector
- Banking, currency and dollar auctionPrivate bank guardianship or receivership
- Kind of case
- Administrative action
- Jurisdiction
- Federal Iraq
How the money moved, according to the sources
Under Iraq's banking law, the Central Bank of Iraq Board suspended the bank's own management and installed an external guardian with full authority over its affairs, a supervisory or precautionary tool, not itself a criminal finding; the specific violations that triggered it have not been made public.
What happened
Ongoing as of September 2026; guardianship in effect; depositor access remains constrained; no individual has been publicly charged.
Open questions
- The specific violations that triggered the guardianship have not been made public; the bank's beneficial ownership; whether any individual will be referred to the Integrity Commission or courts.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Al-Taif Islamic Bank for Investment and Finance مصرف الطيف الإسلامي للاستثمار والتمويل | Private Baghdad bank | Disciplined by an official body | Placed under 18-month Central Bank of Iraq guardianship (وصاية) 2 September 2026 over unspecified 'serious violations' affecting its financial position and depositors' funds; already barred from USD dealing since a 2023 enforcement action. Custodian Imad Muhammad Hamad appointed to run the bank. | 28 September 2026 |
| Imad Muhammad Hamad | Central Bank-appointed custodian or guardian of Al-Taif Bank | Not charged as of the date of writing | Appointed for an 18-month term to run the bank; not accused of wrongdoing. | 28 September 2026 |
Sources
- Central Bank of Iraq8 September 2026Government statementTier A
بيان خاص من البنك المركزي حول ودائع مصرف الطيف (Special statement from the Central Bank regarding Al-Taif Bank deposits)
OriginalSHA-256 077b6ce737f2حقوق مودعي مصرف الطيف الإسلامي محفوظة (the rights of Al-Taif Islamic Bank's depositors are protected)
- Shafaq News2 September 2026Press reportTier D
CBI places Al-Taif Islamic Bank under guardianship
OriginalThe Central Bank of Iraq (CBI) placed Al-Taif Islamic Bank for Investment and Finance under guardianship on Wednesday over violations that affected its financial position and depositors' funds
- Iraq Business News3 September 2026Press reportTier D
Al-Taif Islamic Bank put into Receivership
Originalhas been placed in receivership following the discovery of serious violations that affected its financial position and depositors' funds