Money was wired through Western Union to an Islamic State-linked group.
The national bank is accused of enabling the embezzlement scheme.
The 56-year-old defendant appeared in court on Thursday.
Nearly MVR2 million was diverted to build the former ruling party's office.
No suspects charged with joining militant groups have been convicted to date.
Fayaz was released last year after completing his prison term.
Deputy CEO Shareef is accused of lying to an oversight committee.
He was transferred after reporting suspicious transactions by former president Yameen.
Monday's hearing was cancelled after a defence lawyer called in sick.
Deputy CEO Shareef was accused of lying to an oversight committee.
The hearing was the first to be broadcast live on television.
Bank officials sought to shift blame to the anti-money laundering watchdog.
Two men were sentenced to 20 years in prison.
Trial date has yet to be announced but his lawyer thinks it will be soon.
Ex-president and his former adviser Azima Shakoor will be tried separately on Thursday.
Impoverished mother says she willingly gave toddler to childless couple because it was best for the child.
The leader of an armed coup attempt to serve the rest of his life sentence.