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Bangladeshi tycoon’s alleged US$1 billion money laundering empire in Singapore exposed

In early August, reports surfaced of Bangladeshi mogul, Mohammed Saiful Alam, owner of S Alam Group, amassing a business empire in Singapore worth around US$1 billion without required permissions from Bangladesh Bank (BB). In light of accusations involving secret property acquisitions, the Bangladesh High Court has demanded an in-depth inquiry.

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SINGAPORE: Last Tuesday, the Singapore Police Force’s operation against a money laundering group that saw ten individuals arrested and assets with an estimated combined value of around S$1 billion (equivalent to US$737 million) seized sent shockwaves across the city-state.

What many in Singapore are not aware of, however, is a shocking development that took place earlier in the same month, where a Bangladeshi tycoon, Mohammed Saiful Alam, the owner of S Alam Group, has reportedly established a business empire in Singapore worth approximately US$1 billion, without obtaining any permission from Bangladesh Bank (BB) for investments or fund transfers abroad — an offence that carries a penalty of up to 12 years in jail and a fine double the amount transferred abroad.

The report entitled “S Alam’s Aladdin’s Lamp,” published by Bangladeshi English-language daily newspaper, The Daily Star on 4 August, highlighted that although the central bank had granted permission for 17 companies to invest abroad, the S Alam Group’s name was notably missing from the list.

It has been alleged that Saiful Alam acquired multiple properties, including hotels and homes, in Singapore while attempting to conceal his involvement.

The publication pointed out that as of 10 January this year, the BB sanctioned around US$40.15 million for global foreign investments, a far cry from Saiful’s reported US$411.8 million on two hotels and a retail space in Singapore since 2009.

The report indicated that Saiful Alam and his wife were listed as directors of Wilkinson International Pte Ltd, a company registered in Singapore. This company had assets valued at nearly USD 1 billion in 2021 and exhibited expenditures exceeding its earnings.

“While financing could mean both equity and borrowing, analysts looking at the statements noted that since Alam and his wife were the sole shareholders at least until the end of 2020, this amount would potentially have to be bank borrowings or cash loans, and not equity.” – The Daily Star

The report also highlighted that the couple possesses properties in Singapore that have been transferred to trust funds.

Since Singapore abolished estate duty in 2008, income distributions from Singaporean trusts are tax-exempt. Additionally, successors can be added as beneficiaries of a Singaporean trust without incurring any estate duty.

Following the report and public outcry, the Bangladesh High Court ordered a comprehensive investigation on 6 August into the alleged establishment of Saiful’s business empire in Singapore.

According to the Bangladeshi daily newspaper, The Business Standard, the bench, led by Justice Md Nazrul Islam Talukder and Justice Khizir Hayat, directed the Bangladesh Anti-Corruption Commission (ACC) and the Bangladesh Financial Intelligence Unit (BFIU) to conduct a thorough inquiry into the matter and submit a comprehensive report within two months from 6 August 2023.

The High Court has also summoned the editor of The Daily Star to present the documents that formed the basis of the published report within the following four weeks.

ACC lawyer Khurshid Alam Khan said that the court had scheduled the next hearing for 10 October.

Transparency International Bangladesh’s executive director stated that this scenario might indicate illicit financial transfers, particularly if legitimate foreign income sources are lacking.

It was revealed that S Alam Group’s chairman and managing director, Saiful, resides in Singapore, according to newspaper reports.

Recovering smuggled capital from Bangladesh is time consuming

On top of the alleged monies transferred by Saiful Alam, around US$1 billion owned by a former minister convicted of war crimes, is alleged to be residing in a Singaporean bank.

This was said by ACC lawyer Khurshid to The Business Standard back in 2020. Although this information is confirmed by ACC and other agencies, no official acknowledgement has been made.

The lawyer said the laundered capital is recovered through due legal process and mutual cooperation between the countries.

When questioned about the complexities in reclaiming the laundered money, Khurshid mentioned, “Typically, bank accounts have designated nominees, yet this particular account lacks one.”

Furthermore, he said, “No claims on the funds have been made by his heirs, hindering our efforts to recover the money.”

Insiders suggest that relevant agencies are steadily progressing as per the legal protocols.

The ACC representative clarified their limited involvement, saying they cannot act on the funds in Singapore unless the owner seeks them. The chance of recovering the funds under these circumstances is slim.

However, Khurshid added, “We’ve consulted the legal frameworks and alerted the Singaporean government about the nature of the funds. They’ve requested the necessary documentation from us.”

However, no public report or update on the matter has appeared to have been published since then.

A report from Global Financial Integrity in 2019 suggests that US$52.74 billion has been laundered from Bangladesh over the past seven years, primarily through import-export fraud.

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Bangladesh

Former Bangladeshi minister’s US$695 million asset empire revealed amid corruption scandal

Al Jazeera’s documentary exposes a US$695 million asset empire amassed by Saifuzzaman Chowdhury, a former Bangladeshi minister, despite earning an annual salary of just US$13,000. Authorities have frozen his bank accounts and launched a money laundering probe, while Chowdhury denies any wrongdoing, calling it a political attack.

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6 hours ago

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19 September 2024

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Al Jazeera has released a documentary revealing a US$695 million asset empire amassed by Saifuzzaman Chowdhury, a former Bangladeshi land minister and close ally of ex-Prime Minister Sheikh Hasina.

The investigation highlights how Chowdhury built this wealth, which includes extensive property holdings as well as other assets, while earning an annual salary of just US$13,000. He acquired luxury properties in London, Dubai, and New York, without declaring these assets to Bangladeshi tax authorities.

Bangladeshi authorities have frozen Chowdhury’s bank accounts and launched an investigation into claims of money laundering.

Al Jazeera’s Investigative Unit, which began its probe before a major political uprising in Bangladesh, uncovered this fortune through undercover operations, tracing the minister’s undisclosed assets.

Chowdhury denies the allegations, calling the investigation a political attack.

Sheikh Hasina, the former prime minister, is currently in exile in India after her government was toppled following a violent crackdown on student protests in July.

Widespread protests erupted over allegations of corruption and brutality by the political elite, which ultimately led to demonstrators storming her official residence. Hasina resigned and fled to India, while many of her ministers, including Chowdhury, also fled the country.

Chowdhury’s property portfolio is vast. Between 2016 and 2021, he purchased 265 homes across the UK, many from leading developers like Barclay Group.

In 2021, he added a US$16 million London property to his collection. By 2022, he had acquired 360 properties worth over US$250 million in the UK alone. His holdings also include 54 properties in Dubai’s most exclusive areas and several luxury apartments in New York and New Jersey.

Bangladesh’s strict foreign currency laws limit citizens to transferring no more than US$12,000 abroad annually without special approval.

However, Chowdhury allegedly bypassed these regulations by funnelling funds through his business interests in Dubai, which enabled him to finance his overseas purchases.

His network of advisors, including estate agents and lawyers, helped him set up offshore companies and secure financing, further complicating the trail of his wealth.

Chowdhury, who held key political positions, was promoted to Land Minister in 2019 under Hasina’s government. He claims his fortune is linked to legitimate business activities, including his stake in UCB Bank, one of Bangladesh’s largest banks.

In an earlier press conference in February, Chowdhury said, “My father had been doing business in London since 1967. I myself studied in the United States and has been doing business there since 1991. Then I expanded my business to London.”

However, in the documentary, he confesses in a secretly recorded video to channelling money from his business in Dubai, which has transactions with his businesses in Bangladesh.

He also admits that Prime Minister Sheikh Hasina was aware of his business dealings abroad.

The documentary alleges that UCB Bank has also come under scrutiny, with shareholders accusing Chowdhury of siphoning funds. The central bank of Bangladesh has since dissolved UCB’s board, and authorities are investigating further.

Singapore-based DBS Bank, one of Asia’s largest banks, is also named for its involvement.

According to the investigation, DBS initially faced compliance issues when onboarding Chowdhury’s companies due to his status as a politically exposed person (PEP), which requires stricter scrutiny. Despite these challenges, DBS was said to have eventually approved 19 loans to Chowdhury’s companies, helping finance his extensive property acquisitions, including in London.

It, however, pales in comparison to the role of Market Financial Solutions (MFS), a Mayfair-based lending firm that provided hundreds of loans to Chowdhury, significantly contributing to the financing of his property empire. The documentary suggests that MFS played a central role in helping Chowdhury acquire properties in London, demonstrating how such networks of lenders facilitated the expansion of his undisclosed wealth.

MFS and DBS said to Al Jazeera that they had conducted all anti-money laundering checks required by law, including enhanced diligence for PEPs.

The documentary highlights how weak regulatory oversight in the UK and Dubai allowed Chowdhury to build this empire undetected.

Chowdhury’s ability to purchase property in London, despite his politically exposed status, has prompted calls for stronger enforcement of anti-money laundering laws in these countries. Experts argue that the case underscores the need for stricter regulation of financial dealings with foreign officials and PEPs.

Chowdhury’s whereabouts are currently unknown, but he continues to deny any wrongdoing, saying that he complies with all Bangladesh tax laws and that his business dealings are legitimate and subject to enhanced due diligence. He told Al Jazeera that the funds used to purchase the properties mentioned in the documentary come from his legitimate, long-standing business outside of Bangladesh.

His case has become a symbol of Bangladesh’s broader corruption challenges, with mounting public protests demanding accountability from its former leaders.

 

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Prominent Bangladeshi human rights defenders convicted, sparking international outcry

FORUM-ASIA and its member organizations express solidarity with Bangladeshi human rights defenders, Adilur Rahman Khan and ASM Nasiruddin Elan, following their conviction by the Dhaka Cyber Tribunal.

The defenders, known for their work with Odhikar, have faced persistent harassment since revealing extrajudicial killings in 2013. FORUM-ASIA calls for their immediate release and urges Bangladesh to respect human rights and uphold international commitments.

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1 year ago

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19 September 2023

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DHAKA, BANGLADESH: The Asian Forum for Human Rights and Development (FORUM-ASIA), in collaboration with its member organisations, has issued a joint statement to stand in firm solidarity with distinguished Bangladeshi human rights defenders, Adilur Rahman Khan and ASM Nasiruddin Elan.

This follows the alarming news of their recent conviction to two years of imprisonment and a subsequent fine by the Dhaka Cyber Tribunal.

Adil and Elan are well-recognised for their relentless efforts at Odhikar, a leading organisation monitoring civil and political rights infringements in Bangladesh.

Their extensive work has captured significant instances of human rights transgressions, ranging from extrajudicial executions to grievous violence against women and minorities.

The duo, and by extension Odhikar, have been subjected to persistent judicial harassment since 2013.

This came in the wake of a report they released, revealing the extrajudicial killing of 61 individuals during a single-night clampdown on demonstrators.

In retaliation, authorities framed Adil and Elan with charges under Section 57 of the Information and Communications Technology Act of 2006, accusing them of disseminating “false and defamatory electronic information.”

Both faced prolonged periods of arbitrary detention before securing bail, with Adil detained for 62 days and Elan for 25.

Odhikar, along with its esteemed members Adil and Elan, has been a frequent target of orchestrated slander campaigns in response to their human rights activism.

Their organisation’s registration faced non-renewal in 2022 by the NGO Affairs Bureau (NGOAB), pointing to purportedly ‘erroneous information’ they published on extrajudicial executions. This decision was further backed by the Prime Minister’s Office.

Speaking on the matter, Mary Aileen Diez-Bacalso, FORUM-ASIA’s Executive Director, said, “The conviction, especially during the 25th anniversary of the UN Declaration of Human Rights Defenders, epitomises an alarming trend to suppress dissent and target the foundational values of democracy and rule of law. Bangladesh’s actions in this matter gravely conflict with their international obligations.”

It is critical to highlight that Bangladesh’s government has shown minimal initiative in addressing recommendations from prior Universal Periodic Reviews.

Many of these recommendations, chiefly focusing on the protection of human rights defenders from intimidation, have been largely ignored.

FORUM-ASIA, along with its allied bodies, is urging the Bangladesh government for the immediate and unconditional release of Adil and Elan.

They are appealing to the authorities to respect the rights of human rights defenders and ensure their safety.

The consortium stresses the importance of refraining from the criminalisation of human rights activities and calls on the government to honour its international commitments, encompassing the rights to free expression, association, and peaceful assembly.

Signatories of joint statement

  1. Cambodian Human Rights and Development Association (ADHOC)
  2. AWAZ Foundation Pakistan: Centre for Development Services (AWAZCDS)
  3. Balay Alternative Legal Advocates for Development in Mindanaw (BALAOD-Mindanaw), The Philippines
  4. Banglar Manabadhikar Suraksha Mancha (MASUM), India
  5. Bir Duino, Kyrgyzstan
  6. Bytes for All, Pakistan
  7. Centre for Human Rights and Development (CHRD), Mongolia
  8. Civil Society and Human Rights Network (CSHRN), Afghanistan
  9. Defence of Human Rights (DHR), Pakistan
  10. Asian Forum for Human Rights and Development (FORUM-ASIA)
  11. Human Rights Measurement Initiative (HRMI), New Zealand
  12. International Legal Initiative Public Foundation (ILI Foundation), Kazakhstan
  13. Informal Sector Service Center (INSEC), Nepal
  14. Karapatan Alliance Philippines (Karapatan)
  15. Kazakhstan International Bureau for Human Rights and Rule of Law (KIBHR)
  16. Cambodian League for the Promotion and Defense of Human Rights (LICADHO)
  17. Maldivian Democracy Network
  18. National Center Against Violence (NCAV), Mongolia
  19. Philippine Alliance of Human Rights Advocates (PAHRA)
  20. People’s Watch, India
  21. PhilRights
  22. People’s Solidarity for Participatory Democracy (PSPD), South Korea
  23. Public Association “Dignity”, Kazakhstan
  24. Pusat KOMAS, Malaysia
  25. Task Force Detainees of the Philippines (TFDP)
  26. Think Centre, Singapore
  27. Women’s Rehabilitation Centre (WOREC), Nepal

 

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