The Bangladesh Financial Intelligence Unit (BFIU) has blocked an attempt by former Premier Bank chairman HBM Iqbal and his family members to withdraw Tk 2.87 billion from their accounts.

The former Awami League MP and his family members had deposited cheques at several private banks to withdraw funds from multiple accounts held at Premier Bank's Banani branch, belonging to Premier Property Development Company, Premier Hotels and Resorts, Iqbal Centre, Premier Hotel Management Company Ltd and Bukhara Restaurant.

As per the rules, when a cheque is deposited at another bank, it is cleared by verifying the signature and amount through the central bank's server, which uses the commercial banks' accounts. The final settlement between the two banks happens later on the same business day.

This entire process is automated and online, making it difficult to detect such attempts immediately. Iqbal intended to take advantage of this.

However, the transactions were halted midway due to the BFIU's intervention.

The commercial banks had notified the BFIU as an added precaution before clearing the cheques. Legally, no funds can be withdrawn from a seized bank account.

When asked why they accepted a cheque from a restricted account, the current Premier Bank Chairman Arifur Rahman, said that "The BFIU is investigating the entire matter. We expect them to give us instructions within a day or two.

“As soon as we get them, we can provide more details. Anything I say now would be speculative and may not be accurate."

All bank accounts belonging to Iqbal and his family members, including his wife Anjuman Ara Shilpi, three children Moin Uddin Iqbal, Ikram Iqbal, and Nawrin Iqbal as well as another member, Jamal G Ahmed, remain blocked.

The BFIU imposed a freeze on these accounts on Nov 11, 2024, after the fall of the Awami League government in the July Uprising.

Iqbal and his family members are no longer seen in public and are reportedly abroad.

Following the interim government's assumption of power, numerous regulatory bodies and the bank boards of directors in the financial sector were restructured.

Iqbal, who had served as chairman since the bank's establishment in 1999, voluntarily stepped down as the Premier Bank chairman during a period when Bangladesh Bank was forming new bank boards.

He handed over his resignation on Jan 12, citing health reasons. His resignation was accepted two days later.

His son Moin Iqbal, who was serving as the bank's vice-chairman, also resigned at the same time without providing a reason. Both also relinquished their roles as directors.

Following this, another son, Mohammad Imran Iqbal, was appointed as chairman.

Bankers believe that the former Awami League leader had strategically resigned to maintain his family's control over the board.

On Aug 19, the central bank dissolved the private bank's board due to "governance deficiencies”, finally freeing Premier Bank from the control of Iqbal's family.

Following the government change, the Anti-Corruption Commission (ACC) opened a probe into allegations of corruption against Iqbal.

Based on initial complaints, the ACC said he misused his position to develop several properties -- including Renaissance Dhaka Gulshan Hotel, the Hilton Hotel and Resort in Gulshan-2, and the Royal University of Dhaka -- while serving as chairman of Premier Bank since 2011.

During this period, he was also a member of the Bangladesh Association of International Recruiting Agencies (BAIRA).

The national anti-graft agency also alleged that over the past decade, he acquired ownership of multiple companies and amassed significant wealth by holding key positions in them.

In April of this year, while abroad, Iqbal withdrew nearly Tk 15 million in local and foreign currency from his Premier Bank accounts.

The incident was investigated later by Bangladesh Bank, BFIU, and Premier Bank.

As a result, the BFIU fined Premier Bank Tk 11.1 million and $30,000, which is the equivalent amount of the withdrawn money, under section 23 (6) of the Money Laundering Prevention Act.