The Bangladesh Financial Intelligence Unit (BFIU) has fined Premier Bank Tk 1.11 crore and $30,000 (in equivalent local currency) for unfreezing the bank account of HBM Iqbal, the former chairman of the bank, and allowing fund withdrawals from the account in violation of law.

The anti-money laundering agency sent a letter to the bank in this regard on Wednesday.

A former member of parliament, Iqbal is also the chairman of Premier Group of Companies Ltd.

In November last year, the BFIU instructed all banks to freeze the personal and solely owned company accounts of HBM Iqbal, then chairman of Premier Bank, and his family members.

However, the BFIU found that Premier Bank had unfrozen the bank account of its former chairman HBM Iqbal and allowed the withdrawal of Tk 1.11 crore and $30,000 from the accounts.

An official of the BFIU, seeking anonymity, told The Daily Star that the bank unfroze Iqbal's account and allowed fund withdrawals, thereby violating the law.

He added that the fine was imposed under Subsection 6 of Section 23 of the Money Laundering Prevention Act, 2012.

According to this subsection, if any reporting organisation fails to comply with an order for freezing or suspension of transactions issued by Bangladesh Bank under clause (c) of Subsection (1), the central bank may impose a fine not less than the balance held in that account but not more than twice the balance held at the time the order was issued.

After co-founding Premier Bank in 1999, Iqbal served as chairman for 26 years before stepping down in January this year. Following the political changeover on August 5 last year, Iqbal fled the country.

Mohammad Imran Iqbal, son of HBM Iqbal and a director of the bank, was appointed as the new chairman, ensuring the continuation of the family's influence over the institution.

The Daily Star tried to reach Mohammad Abu Jafar, managing director and CEO of Premier Bank, via phone and text messages, but he did not respond.

However, a senior official of the bank, seeking anonymity, told the newspaper that the bank will take action against the officials involved in the irregularities.