Fraudulent transfer of $20 million to Dubai

AB Bank sues former officials, other parties

FE REPORT | Published: December 16, 2019 12:20:11 | Updated: December 16, 2019 16:37:36

AB Bank filed a case against a number of former officials and other parties involved in illegal transfers totaling USD 20 million to a commercial bank in Dubai.

The case was filed on November 20 in the court of the 1st Joint District Judge, Dhaka, according to a statement of AB Bank.

The then board of directors of AB Bank allegedly approved a Wakala agreement, whereby AB would provide USD 20 million to a Singapore financial intermediary as security and in return the AB Bank was to receive USD 80 million as a loan.

In breach of the terms of the agreement, the USD 20 million was not transferred to the Singapore entity but was transferred into the account of an unconnected offshore company in Dubai with the UAE Bank, the statement said.

"One senior official was supposed to be nominated by AB Bank as the authorised joint signatory on the beneficiary account before the transfer of USD 20 million."

"This was not done and as a result, the USD 20 million was withdrawn without the knowledge of AB Bank."

"It has been alleged that the defendants of this case were parties to a conspiracy to defraud AB Bank of USD 20 million and for which the bank officials did not comply with proper internal procedures and failed to keep proper records, the statement said.

AB Bank is represented by a team of lawyers from A Hossain & Associates, Dhaka, led by Barrister Ajmalul Hossain QC, Senior Advocate, assisted by Barrister Abul Qashem.

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