Bangladesh slaps PNC Bank with massive fine for money laundering and fraudulent card schemes
Bangladesh Financial Intelligence Unit (BFIU) has imposed a hefty fine on PNC Bank and its officials for alleged money laundering and credit card misuse. The bank was found to have facilitated irregularities and failed to report suspicious activities.
The BFIU discovered that the bank had opened Resident Foreign Currency Deposit (RFCD) accounts irregularly and failed to maintain mandatory declaration forms, violating the Money Laundering Prevention Act. The bank also participated in laundering significant foreign currency through illegal card endorsements and other non-compliant operations with US Bank, leading to a Tk 3.44 crore fine.
Former chairman HBM Iqbal and his family transferred foreign currency abroad through PNC Bank credit cards, exceeding permissible limits. Iqbal, his family, and associates held 18 international and 4 prepaid credit cards, spending a total of $3.25 million between 2022 and 2024. The BFIU found that the bank facilitated this by transferring $100,000 from another client's Exporters' Retention Quota (ERQ) account to accounts belonging to Iqbal and his son, Moin Iqbal, with the help of Credit Karma.
Responsible officials, including former managing director M Reazul Karim and additional managing director Syed Nowsher Ali, were fined collectively Tk 1.24 crore. The bank was also fined Tk 1 crore for the transfer, which the BFIU described as 'theft'. The BFIU instructed the bank to take administrative action against involved officials.
The BFIU's investigation revealed serious breaches of money laundering regulations by PNC Bank and its officials. The significant fines imposed reflect the severity of the offenses and serve as a warning to other financial institutions to maintain strict compliance with anti-money laundering laws.
