Rafidain Bank Diwaniyah branch banknote-swap embezzlement (2026)
On 9 July 2026 a joint force from Iraq's Federal Commission of Integrity and a SWAT unit arrested several officials of state-owned Rafidain Bank's branch in Al-Diwaniyah province over a suspected currency-manipulation and embezzlement scheme. Investigators said the officials fraudulently replaced genuine 50,000-dinar banknotes with 1,000-dinar notes inside cash holdings, allowing the difference to be stolen; authorities estimated the loss at roughly IQD 1.6bn (about $1.22m). No names of the detained officials were published, and the investigation was described as ongoing, with efforts continuing to identify all participants and recover the funds.
- Period
- July 2026
- Sector
- Banking, currency and dollar auctionState-owned bank branch embezzlement
- Kind of case
- Criminal enforcement action (arrests)
- Jurisdiction
- Federal Iraq
How the money moved, according to the sources
Physical or administrative banknote substitution, swapping high-denomination notes held in bank cash reserves for low-denomination notes of similar bundle weight or packaging, then diverting the removed high-value notes, embezzling the face-value difference under cover of ordinary cash operations.
What happened
Investigation ongoing; no court outcome is on record.
Open questions
- Names, ranks and number of those detained; whether charges have been filed; whether funds have been recovered; how the scheme went undetected.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Several Rafidain Bank officials, Al-Diwaniyah branch (unnamed) | State-owned Rafidain Bank branch officials | Arrested | Detained by a joint Federal Commission of Integrity/SWAT force, 9 July 2026, over a suspected banknote-swap embezzlement scheme (replacing genuine IQD 50,000 notes with IQD 1,000 notes in cash holdings); names not published; investigation described as ongoing. | 28 September 2026 |
Sources
- Shafaq News9 July 2026Press reportTier D
Iraq detains Rafidain Bank officials over $1.22M fraud
OriginalA joint force from Iraq's Federal Commission of Integrity and a SWAT unit arrested several Rafidain Bank officials in the southern province of Al-Diwaniyah on Thursday over a suspected currency manipulation operation that authorities believe resulted in the embezzlement of about 1.6 billion Iraqi dinars ($1.22M)
- iqdnews (Substack)10 July 2026Press reportTier D
Rafidain Bank Officials Arrested in Diwaniyah Over 1.6 Billion Dinar Banknote Fraud Scheme
Originalan internal embezzlement and money laundering ring