Three directors of AB Bank, including its chairman M Wahidul Haque, have resigned amid rumours of a change in the bank's ownership. The two others are: vice-chairman Salim Ahmed and director Faheemul Huq. The resignations were accepted at the bank’s annual general meeting in Dhaka yesterday.

Following their resignations, MA Awal was appointed the chairman of AB Bank while Feroz Ahmed was made vice chairman of the board of directors. Both were previously on the board.

According to sources in Bangladesh Bank (BB), the three directors have resigned after the central bank found that AB Bank had laundered around Tk. 165 crore to the United Arab Emirates through two shady organisations in the name of investment.

In December 2013, the board of directors of AB Bank had approved an investment of USD 20 million in a Singapore-based fundraising and investment company, Pinnacle Global Fund Pvt Ltd (PGF), through the bank's offshore banking unit (OBU).

In February 2014, the OBU laundered the money to an account at the UAE-based Abu Dhabi Commercial Bank (ADCB).

According to the central bank report, the account belonged to the Cheng Bao General Trading LLC, which acted as a Special Purpose Vehicle (SPV) or a mediator for the PGF. Cheng Bao immediately withdrew the money and closed the account. Where the money went after the withdrawal could not be ascertained, as AB Bank failed to give BB any substantial documents on Cheng Bao and the PGF.

Central bank officials assume that the three directors have resigned to avoid responsibility in the money laundering issue. Wahidul Haque did not attend the bank’s annual general meeting citing health issues. “I have resigned at the end of my term,” he told the media.

Haque was appointed chairman soon after joining the bank as a director in December 2007. He held the post since then. At the time of filing this report, AB Bank’s directors were holding a meeting to fill the vacant posts.