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TL;DR
- Beximco Group is under investigation by the CID for laundering at least $135 million through trade-based money laundering involving 18 companies.
- The conglomerate allegedly took fraudulent loans totaling Tk 33,470 crore from seven banks over the last 15 years and laundered the funds abroad.
- Salman F Rahman, vice-chairman of Beximco Group and former adviser to Sheikh Hasina, is implicated in the laundering and investment of funds in real estate overseas.
- The CID plans to file charges under the Money Laundering Prevention Act following the completion of their primary investigation.
The Criminal Investigation Department (CID) of Bangladesh has launched an investigation into allegations of massive money laundering by Beximco Group, a prominent conglomerate in the country. The investigation, which was announced on September 1, 2024, reveals that Beximco Group allegedly laundered at least $135 million by exporting goods through 18 companies without repatriating the export value. This activity has been classified by the CID as “trade-based money laundering”.
The investigation is being led by the CID’s financial crime unit, with Kusum Dewan, Deputy Inspector General of Organised Crime, highlighting the seriousness of the anomalies. The CID’s database indicates that significant sums were laundered through various subsidiaries of Beximco Group, including $23.04 million through Apollo Apparels, $24 million through Bextex Garments, $25.20 million through International Knitwear and Apparels, and $24.39 million through Esses Fashions.
Beximco Group, chaired by Salman F Rahman, who was an adviser to former Prime Minister Sheikh Hasina, is accused of opening letters of credit for exporting goods and subsequently taking local loans against 80% of the export value. The failure to repatriate export proceeds resulted in unpaid loans, which contributed to the laundering activities. CID Inspector Md Moniruzzaman noted that this method was used to launder money.
Further investigations have uncovered that Rahman allegedly invested the laundered funds in real estate across Dubai, Singapore, and the UK. Additionally, his son, Ahmed Shayan Fazlur Rahman, reportedly opened a large pharmaceutical company in Saudi Arabia, with most of its funding originating from Bangladesh.
The CID’s preliminary investigation has also revealed that Beximco Group fraudulently took loans from seven banks over the past 15 years, amounting to a staggering Tk 33,470 crore (approximately $3.1 billion). The loans were obtained from institutions such as Janata Bank, IFIC Bank, National Bank, Sonali, Agrani, Rupali, and AB Bank. The CID has sent teams to these banks to collect further data.
In addition to the laundering allegations, there are claims that Beximco Group has embezzled around Tk 20,000 crore through market fraud and forgery over the last three years. The CID is preparing to file a case under the Money Laundering Prevention Act against Beximco Group and associated individuals.
Salman F Rahman has been in police custody since August 13, 2024, in connection with a separate case involving the killing of a shop employee. The ongoing investigation into the financial misconduct of Beximco Group marks a significant development in Bangladesh’s efforts to combat financial crime and corruption.
Source: The Daily Star
