The Bangladesh Bank (BB) yesterday put a bar on trading AB bank's and AB Bank Foundation's 18.31 percent shares in IFIC bank.

The central bank ban on the share trade followed an earlier investigation by it which had found AB bank and AB Bank Foundation in violation of the Bank Company Act in purchasing the IFIC shares.

The central bank is also seeking legal advice from its lawyers to find out a lawful way to confiscate the IFIC shares owned by AB bank and AB Bank Foundation.

The central bank sent the order to IFIC bank yesterday.

The anti-money laundering and foreign exchange department of BB is also currently scrutinising the

irregularities found by the investigation in purchasing IFIC shares by former BNP lawmaker Mosaddak Ali Falu, and Beximco Group.

AB Bank, and AB Bank Foundation together hold a total of 7,44,237 shares or 18.31 percent shares of IFIC bank, with AB bank owning 4,03,461 shares while its subsidiary AB Bank Foundation holds 3,40,776 shares.

Besides, AB bank also owns 99.60 percent shares of AB Bank Foundation. On top of that, eight directors of the foundation were also appointed by AB bank, making the bank and the foundation a single entity which holds over 10 percent shares in IFIC bank flouting the Bank Company Act.

Sources said after examining the legal aspects, the Bangladesh Bank will send a show cause notice to AB bank asking it to explain why its shares of IFIC bank should not be confiscated.

According to the BB investigation report, Falu and his associates, and Beximco Group own 13.71 and 12.74 percent shares of IFIC bank respectively, also directly violating the Bank Company Act.

Besides, the central bank also found gross anomalies in the purchase of IFIC shares by former lawmaker Falu through a Malaysian based company.

The report said the process of purchasing the IFIC shares by the Malaysian company, in which Falu is a partner, was totally in violation of the Money Laundering Act.