The central bank has removed SM Shamsul Arefin, managing director of Uttara Finance and Investments Limited, a listed non-bank financial institution, for his involvement in financial irregularities. The Bangladesh Bank, in a letter on Thursday, said it took the action after CA firm Rahman Rahman Huq found widespread financial irregularities against the managing director.

The letter said that in order to properly manage the activities of the institution, it was directed to take action in accordance with the policies on appointing the chief executive of financial institutions. A senior official at the central bank said the Bangladesh Bank has taken action against the wrongdoer only after thorough scrutiny. However, investors will not face any problems due to the action.

He added the institution’s directors had taken loans without approval. They embezzled money in various ways. There are mismatches in loan-deposit information. The company was taking time to provide its financial report showing various excuses. Later, the central bank was compelled to appoint an auditor in Uttara Finance to find out the irregularities.

Earlier in 2018, Uttara Finance had sent incorrect information to the central bank’s Credit Information Bureau (CIB) regarding the loans of three customers. The central bank fined the NBFI Tk5 lakh for providing false information. Later, the Bangladesh Bank rejected the request for a waiver of the fine.