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TL;DR
- Bangladesh’s CID is investigating S Alam Group owner Mohammed Saiful Alam for allegedly laundering Tk 1,13,245 crore (approx. $10.7 billion) through shell companies and offshore accounts.
- S Alam invested about 700 million Singapore dollars in Singapore, acquiring three hotels and retail spaces in a shopping mall without Bangladesh Bank’s approval.
- The investigation reveals S Alam and associates allegedly renounced Bangladeshi citizenship, obtained Singapore residency, and used hundi operations and invoice manipulation for money laundering.
- S Alam Group allegedly controls several banks in Bangladesh, with accusations of taking loans worth Tk 95,000 crore from eight banks using false claims of export-import business and investments.
Bangladesh’s Criminal Investigation Department (CID) has launched an investigation into alleged money laundering of Tk 1,13,245 crore (approximately USD 10.7 billion) by S Alam Group owner Mohammed Saiful Alam and his associates. The probe, which began on September 1, 2024, is being conducted by the CID’s Financial Crime Unit under the Money Laundering Prevention Act, 2012.
Preliminary evidence suggests that Saiful Alam and his associates used shell companies and offshore accounts to transfer funds illegally out of Bangladesh. The group is suspected of employing various methods including hundi operations, fraud, forgery, and manipulating import-export invoices to move money abroad.
The investigation has revealed that Saiful Alam and other suspects allegedly renounced their Bangladeshi citizenship and obtained permanent residency in Singapore within a single day. The laundered funds were reportedly used to purchase assets and establish businesses in Singapore, Malaysia, Cyprus, and several European countries.
One key finding is the establishment of Canali Logistics Private Limited in Singapore, with a paid-up capital of Tk 245 crore. The CID also alleges that approximately Tk 18,000 crore was transferred abroad through shell companies using offshore banking channels.
“Our initial investigation has uncovered evidence of a complex money laundering operation involving multiple jurisdictions,” said a senior CID official who requested anonymity due to the ongoing nature of the probe.
The inquiry is focusing on Saiful Alam, his wife Farzana Parveen, sons Ahsanul Alam and Ashraful Alam, and other associated parties. The CID is working to trace the movement of funds and identify all individuals involved in the alleged scheme.
This investigation follows earlier reports and court orders regarding S Alam Group’s overseas investments. In August 2023, the High Court of Bangladesh had directed an inquiry into claims that Saiful Alam had built a business empire in Singapore worth approximately USD 1 billion without obtaining permission from the Bangladesh Bank.
The S Alam Group, which has expanded from the edible oil and consumer goods market into the energy sector, has been under increasing scrutiny for its financial practices. The group allegedly controls several banks in Bangladesh, raising concerns about potential conflicts of interest and regulatory oversight.
The CID’s investigation is expected to have significant implications for Bangladesh’s financial sector and efforts to combat money laundering. As the probe continues, it may lead to further regulatory actions and potentially impact the country’s ongoing efforts to strengthen its anti-money laundering framework.
Source: TBS News
