The full report of the investigation finalised yesterday is likely to be submitted to the Bangladesh Bank (BB) Governor Dr Fakhruddin Ahmed today.

The investigation conducted by the Anti-Money Laundering Department found gross violation of banking rules in the opening of around 17,000 accounts with different branches of Premier Bank and found these accounts to be fake.

The concerned branch managers said they were forced to open these accounts at verbal instructions from Kazi Abdul Mazid, managing director, and Syed Nowsher Ali, manager of the Banani branch of the bank.

The investigators recommended taking action against the branch managers under the Clause 19.1 (a), (b) and (c) and Clause 4 of the MLA. Under these clauses, the accused may be fined between Tk 10000 and Tk one lakh.

These clauses dictate the banks that while opening accounts, the banks must obtain full identities and addresses of the clients and preserve the information for five years after the accounts are closed. The information is to be provided to the BB as and when needed. The banks are also to inform the BB if they notice unusually high transactions that indicate links with money laundering.

"We have suggested action against the managers under the MLA. But to take action against the MD and other high officials involved, we recommended taking action under the Bank Company Act as the MLA cannot take action against an MD," said an investigation officer of the Anti-Money Laundering Department.

The Bank Regulation and Policy Department of the BB is the appropriate body in this regard. "All we can say is we found serious irregularities involving the MD. His crime is so serious that he can be removed from the bank and be given further punishment under the Bank Company Act," the investigator pointed out.

Sources said, the investigators did not pinpoint the mastermind who has backed the MD in implementing the scam. "But we know there is a powerful person behind the MD. The central bank may file a case against the civil court and follow-up investigations will unearth this powerful person's involvement," quipped a high official of the BB.

The bank will scrutinise the investigation report after it is submitted to the governor and then go for action, he added.

On February 12, the Securities and Exchange Commission (SEC) suspended a Tk 55 crore public floating of Premier Bank after around 25,000 fake beneficiary owners' (BO) accounts were found in its preliminary investigation.

The Bangladesh Bank on February 14 launched an investigation into the Premier Bank public floating scam after being informed officially by the SEC.

It is mandatory to mention a bank account number, the branch name and a BO account number while applying for shares in IPO. On the other hand, it is also mandatory to mention a bank account number and the branch name while opening a BO account.

Apart from the Dhaka Stock Exchange, many small as well as big investors suspect that the Premier Bank might have tried to manipulate the initial public offering (IPO) process.