CID files 17 cases against Salman, 27 others for laundering over Tk1,000cr thru export fraud

Infograph: TBS

The Criminal Investigation Department (CID) has filed 17 cases against Ahmed Sohail F Rahman, chairman of Beximco Group, and Salman F Rahman, the company's vice-chairman, along with their sons and 24 others, accusing them of laundering approximately Tk1,000 crore ($83 million) under the guise of export trade.

Superintendent of Police Md Basir Uddin from CID's financial crime unit confirmed the development today (18 September), following an initial investigation.

According to the case documents, the 24 additional accused include directors and managing directors of 17 companies linked to Beximco Group.

The CID's investigation, conducted under the Money Laundering Prevention Act, revealed that Salman and Ahmed Sohail allegedly laundered around $83 million through the export of goods, using 93 Letters of Credit (LCs) from Janata Bank between 2021 and 2024. However, the proceeds from these exports were never repatriated to Bangladesh.

A director from Beximco Group told TBS that the funds were stuck overseas because long-standing buyers, affected by business setbacks, failed to fulfil their commitments. Also, he noted that around $55 million has since been repaid in instalments, with $80 million still outstanding.

The case documents state that almost all of the exported goods were sent to Sharjah (UAE) and Saudi Arabian addresses of RR Global Trading, a joint venture owned by Salman's son Ahmed Shayan Fazlur Rahman and Ahmed Sohail's son Ahmed Shahriar Rahman.

Bangladesh's laws require repatriation of export proceeds within four months after export. The case documents allege that Salman and other Beximco stakeholders failed to meet this requirement, using the funds for personal gain and acquiring assets instead. This has led to initial evidence of money laundering abroad.

The document also states that Salman and his brother Ahmed Sohail used their influence to engage in money laundering. The accused, in an organised manner, exported goods through related companies with the malicious intent of laundering money abroad, the CID noted.

The CID added that the accused deliberately did not repatriate the export proceeds, violating sections of the Money Laundering Prevention Act.

The investigation further found that Salman and his associates, with the help of an organised criminal group, laundered money abroad. As a result, 17 cases have been filed with the CID's financial crime unit at Motijheel police station.

Meanwhile, a notice from the CID's media wing stated that the agency has also identified money laundering activities under the guise of exports to Germany, the Netherlands, the United Kingdom, Turkey, and Sri Lanka involving the 28 accused individuals.

Controversial businessman Salman F Rahman, who was mostly untouchable during Sheikh Hasina's 15-year rule, is now under investigation by the CID's financial crime unit.

The investigation focuses on serious allegations of money laundering and financial irregularities, according to a CID report from 1 September.

Salman, who was also an adviser to former prime minister Hasina, is accused of taking Tk33,470 crore in loans from seven banks. CID officials believe a large portion of this money was laundered abroad.

Of the total amount, Tk21,681 crore came from state-owned Janata Bank, and another Tk5,281 crore from IFIC Bank, where Salman served as chairman, according to the CID's findings.

Salman is also accused of profiting Tk6,600 crore by manipulating the country's capital market and failing to bring back Tk1,485 crore from export proceeds.

Following intense student and public protests, the Awami League government fell on 5 August. On August 13, police arrested Salman at Sadarghat in Dhaka while he was trying to flee the country by boat. He is now in prison.

BFIU investigates Beximco entities

The Bangladesh Financial Intelligence Unit (BFIU) is also investigating Beximco's money laundering activities. 

The agency has identified 29 companies owned by Salman and suspects that money laundering occurred through these entities. 

A senior official from BFIU said, "We have identified several companies. The process of verifying whether money laundering has occurred through these companies has begun. We will seek information from foreign agencies specialising in anti-money laundering in the near future."

Iftekharuzzaman, executive director of Transparency International Bangladesh, believes the government can recover the embezzled funds if it is determined. He said, "The process of recovering embezzled funds is lengthy, but if the government is committed, the money can be brought back."

He explained that the lawsuit is the first step, and now agencies like the Anti-Corruption Commission, the National Board of Revenue, and the BFIU must work together. "The issue of money laundering must be communicated to the concerned countries with accurate evidence."

He added, "According to international practices, if the embezzled funds are identified, the concerned country will arrange to return the money."