S Alam, family face CID probe over Tk1.13 lakh crore laundering

The Criminal Investigation Department (CID) of police has launched a preliminary investigation into allegations that S Alam Group's Chairman Saiful Alam Masud and his family laundered a massive Tk1.13 lakh crore abroad through deceptive tactics and informal money transfer channel — hundi.

CID officer Azad Rahman from its CID media wing told The Business Standard that the Financial Crime Unit of the department is conducting the investigation.

Sources within the Financial Crime Unit said Saiful Alam, his wife Farzana Parvin, and their two sons have laundered money to various countries, including Singapore, Malaysia, and Cyprus, where they have purchased numerous movable and immovable properties "using the laundered funds."

Sources also said that S Alam established a company named Canaly Logistic Private Limited in Singapore, valued at Tk245.74 crore, with the laundered funds.

In addition, S Alam Chairman Masud allegedly laundered Tk95,000 crore abroad after obtaining loans from six Bangladeshi banks under various names, using false claims of export-import businesses and investments.

The group allegedly laundered Tk18,000 crore through offshore banking using a foreign shell company.

Sources indicate that Masud, along with his wife and children, jointly carried out these financial crimes with assistance from various individuals connected to his business interests.

"We have started to look into the money laundering allegations against S Alam. We will also start a probe into allegations of financial crimes against Beximco Group within a few days and take legal action," an official of the unit told TBS, seeking anonymity.

The CID is also investigating whether money laundering has also occurred through companies owned by S Alam, in addition to those involving his family members.

Laundering through companies

CID officials concerned with the investigation said that over the past 15 years, S Alam Group has established numerous companies, both under their own name and anonymously, to facilitate money laundering activities.

The agency has initially identified 13 such companies owned by S Alam.

The CID's list of the companies, seen by TBS, includes S Alam Steel, S Alam Vegetable Oil, Sonali Trading Limited, S Alam Super Edible Oil, S Alam Cold Rolled Steel, S Alam Refined Sugar, Century Flower Mill, Aramit Limited, Unitex Spinning, Unitex LPG, Adil Enterprise, Sadia Enterprise, and Sunmoon Enterprise.

Laundering through banks

S Alam Group Chairman Saiful Alam Masud holds stakes in seven banks: First Security Islami Bank, Islami Bank Bangladesh, Global Islami Bank, Union Bank, Al-Arafah Bank, Social Islami Bank, and Bangladesh Commerce Bank.

He controls Aviva Finance, a non-bank financial institution (NBFI), and Northern Insurance.

Recent media reports allege that Masud and his family members and relatives have siphoned off thousands of crores of taka from these and other financial institutions.

Some reports suggest the total amount could be as high as Tk150,000 crore. Many of these loans were allegedly secured under the names of paper-based companies.

The Chattogram Port Authority (CPA) on 29 August suspended transactions with nine private banks, and S Alam holds stakes in six of them.