Bangladesh Bank (BB) has uncovered significant financial irregularities at Al-Arafah Islami Bank, including the misuse of its corporate social responsibility (CSR) funds. The central bank also found evidence of suspicious transactions involving two personal employees of the bank's former chairman, Abdus Samad Labu, along with unauthorized bonus payments for the managing director and other senior officials. Following a political shift in August last year, BB dissolved the bank's board, which was led by Labu, and appointed a five-member interim board. A central bank inspection report revealed that Al-Arafah Islami Bank Foundation had submitted a request in December 2023 for approval to distribute Tk 10 crore for blanket donations. Despite the absence of board approval, the full amount was transferred to an account under the foundation at the bank's Gulshan branch. The funds were withdrawn by Labu through cheques signed by him, and the withdrawals were made by his personal chauffeur and office secretary. There was no evidence of payments made to the vendors supplying the blankets, and the lack of board approval violated the bank's procedures. Further investigations by the Bangladesh Bank and the Bangladesh Financial Intelligence Unit (BFIU) discovered additional irregularities, including suspicious transactions linked to Labu’s personal secretary, Mohammad Piaru, whose account contained Tk 1.5 crore. It was also found that Piaru had received multiple promotions with his salary increasing nine times within a single year, leading to his dismissal from the bank. The inspection also highlighted that Managing Director Farman R Chowdhury and other officials received incentive bonuses exceeding regulatory limits, with Chowdhury receiving a higher bonus than the permitted Tk 15 lakh annual cap. In response to these findings, Chowdhury and Deputy Managing Director Muhammed Nadim returned the excess bonus amounts. Chowdhury returned the surplus, while Nadim refunded around Tk 54 lakh. Nadim explained that the bonus was initially given for his team's performance in a football tournament but was later returned due to objections from Bangladesh Bank. The investigations by the central bank and other authorities are ongoing, and any further issues will be addressed accordingly.