Iqbal tries to withdraw Tk 2.87b from Premier Bank, BFIU blocks
Former chairman of Premier Bank, HBM Iqbal, tried to withdraw Tk 2.87 billion in various ways from the private bank.
However, the Bangladesh Financial Intelligence Unit (BFIU) had already imposed restrictions on withdrawals from those accounts. So, the agency, with the cooperation of several banks, was able to block the attempt in the end.
Attempts were made to reach Premier Bank managing director Mohammad Abu Jafar by mobile phone for comment, but he could not be reached.
Later, when Premier Bank’s chairman Arifur Rahman was contacted, it was learned that he spoke with relevant officials of the bank.
Speaking to Prothom Alo, Arifur Rahman said, “This does not fall under my responsibility. I have come to know that Bangladesh Bank had earlier verbally instructed that withdrawals from those accounts be restricted. After that, attempts were made to withdraw Tk 2.87 billion in various ways. However, in the end, Bangladesh Bank’s measures prevented the withdrawal attempt. We are trying to run the bank in compliance with regulations.”
According to Premier Bank sources, deposits belonging to Premier Property Development Company, Premier Hotel and Resort, Iqbal Center, Premier Hotel Management Company, and Bukhara Restaurant—owned by HBM Iqbal and his family—are held in the bank’s Banani branch.
To withdraw money from those accounts, about 300 cheques from the institutions were deposited in First Security Islami Bank, National Bank, and Mercantile Bank.
Each cheque attempted to withdraw Tk 8 million. However, once the matter came to light, the BFIU blocked the transactions. As a result, HBM Iqbal’s family failed in their attempt to withdraw the funds.
In November last year, the bank accounts of then-Premier Bank chairman and former Awami League MP HBM Iqbal were frozen. At the same time, transactions in the bank accounts of his wife, children, and their solely-owned businesses were also suspended.
Despite this, last April, HBM Iqbal withdrew Tk 11.1 million and US $30,000 from his personal bank accounts. For this incident, the BFIU fined Premier Bank Tk 11.1 million and USD 30,000 under section 23(6) of the Money Laundering Prevention Act.
In January this year, HBM Iqbal resigned from his position as chairman of Premier Bank. Since its establishment in 1999, he had been serving as the bank’s chairman. His son Imran Iqbal was appointed as the new chairman.
Then in August, Bangladesh Bank dissolved Premier Bank’s board of directors and formed a new one. The new board included one shareholder-director and five independent directors, thus, Premier Bank came out of the HBM Iqbal family’s grip.
Along with owning Premier Bank, HBM Iqbal is engaged in various businesses.
He is the chairman of Premier Group that runs five-star hotels, restaurants, cement production, medical centres, and various other ventures. He has also established several educational institutions in the country.