Extensive overseas assets of Sheikh Family, 10 industrial groups uncovered

Following the student-led mass uprising that led to the ouster of Prime Minister Sheikh Hasina, 11 investigative teams formed by the interim government have uncovered a range of irregularities—including loan fraud, tax evasion, and money laundering—linked to Sheikh Hasina’s family and ten major industrial groups.

Among them, S Alam Group has been found to be responsible for the largest share of irregularities and laundered funds. Several legal cases have already been filed in this regard.

A special ordinance is currently being drafted to facilitate the repatriation of the laundered money. Deliberations are ongoing to determine which international firm or organisation will be tasked with the recovery process. Experts engaged by the World Bank are assisting with this operation.

The highest level of the interim government has emphasised the utmost importance on this matter. Since then, joint investigative efforts by the Criminal Investigation Department (CID), the National Board of Revenue (NBR) and the Anti-Corruption Commission (ACC) have been significantly intensified. The Bangladesh Financial Intelligence Unit (BFIU) is coordinating the investigation. The Bangladesh Bank has set up a specially secured room to manage and compile the investigation documentation.

Apart from Sheikh Hasina’s family, the ten industrial groups under investigation include S Alam Group, Beximco Group, Nabil Group, Summit Group, Orion Group, Gemcon Group, NASSA group, Bashundhara group, Sikder Group and Aramit group.

In addition to investigating these groups, the personal financial dealings of their key figures are also under scrutiny. It has been reported that several individuals from these families have renounced their Bangladeshi citizenship.

Professor Muhammad Yunus, Chief Adviser to the interim government, is holding monthly meetings to review the progress of the investigation concerning the Sheikh Hasina family and 10 groups. The next anti-money laundering meeting is scheduled for 16 April. Prior to that, a taskforce meeting regarding the recovery of laundered funds will be held today, Sunday. This meeting will be chaired by the governor of Bangladesh Bank, Ahsan H Mansur.

At a press conference in Chattogram last Friday, the governor stated, “Altogether, I estimate that between Tk 2.5 to 3 trillion (2.5 to 3 lakh crore) has been laundered abroad. Major industrial groups from Chattogram and their families are included in this. The amount laundered by Beximco stands at approximately Tk 500 billion (50 thousand crore). Within next six months, a substantial portion of the laundered assets overseas will be consfiscated. We are engaging in discussions with multiple countries and issuing formal letters to various nations and organisations. We are also in contact with foreign legal entities or firms, which will be appointed to assist with this recovery operation.”

It has been reported that the Bangladesh Financial Intelligence Unit (BFIU), both independently and in collaboration with FIUs of different countries, has gathered substantial information. This includes data on the amount of money borrowed under real and fictitious names from domestic banks, the movement of these funds, details of overseas assets acquired and the amount deposited in foreign bank accounts. In addition, evidence relating to bribery, corruption, fraud and forgery is also being compiled. The ACC, NBR and the CID are currently assessing where tax evasion and money laundering have occurred and under which laws these irregularities constitute criminal offences. The ACC has already filed charges in the majority of these cases, with further legal proceeding underway.

Officials involved in the investigation state that out of the 11 cases, foreign assets have been traced in connection with 9 groups. It has been establishing that these assets were deposited entirely with laundered funds.

Domestic courts are issuing orders to confiscate such assets through legal proceedings. However, to seize assets located overseas, legal action must be pursued in the respective foreign jurisdictions. Only upon receiving a favourable court ruling in those countries can the assets be officially confiscated.

According to officials, a special ordinance is being drafted to facilitate the recovery of laundered assets abroad. Once enacted, the ordinance will provide the legal framework for appointing interested organisations to undertake asset recovery efforts in line with the law. These firms will operate on a commission basis. The process of asset repatriation is expected to take several years.

Officials at Bangladesh Bank have emphasised that no individual has been permitted to legally transfer funds aboard for the purpose of acquiring assets. Therefore, all such acquisitions constitute criminal offences. Since the initiative to identify and recover laundered money began, instances of money laundering have significantly decreased, leading to a positive impact on remittance inflows. This is being hailed as one of the key achievements of the current government.

Governor Ahsan H Mansur recently stated that those involved in money laundering will face serious consequences, with the aim of deterring such offences in the future.

According to the data gathered, the investigating agencies have identified the highest number of irregularities and instances of money laundering in connection with S Alam Group. The group is alleged to have diverted over Tk 2 trillion (2 lakh crore) from 11 banks and financial institutions including Islami Bank, First Security Islami Bank, SIBL, Global Islami Bank, Union Bank, Janata Bank and EXIM Bank. A significant portion of these loans has since become non-performing. It is believed that a considerable amount of these funds has been transferred abroad. The group is known to possess multiple luxury hotels, land holdings and other assets in at least six foreign countries.

The court has ordered the seizure of 580 immovable properties including houses, apartments and lands held in the names of former land minister Saifuzzaman Chowdhury, his family and Aramit Group, both within the country and overseas.

These include 343 properties in the United Kingdom, 228 in the United Arab Emirates and 9 in the United States. The Saifuzzaman Chowdhury family took control of the private sector bank UCBL.

Investigative agencies have discovered that companies under the ownership of Salman F Rahman, former adviser to the prime minister, hold over Tk 500 billion (50 thousand crore) in outstanding loans. Properties in London and Singapore are reported to be registered under the names of members of the Beximco Group’s owning family, acquired through laundered funds.

In the case of Bashundhara group, over Tk 350 billion (35 thousand crore) in loans have been identified in the name of various group entities, with some loans having defaulted. Following a petition by the ACC, the court has issued orders to seize and freeze both moveable and immoveable assets abroad belonging to the group’s chairman, Ahmed Akbar Sobhan and eight members of his family. Investigations have uncovered overseas assets held by Bashundhara family members in Sigapore, Switzerland, the United Kingdom, the United Arab Emirates, Slovakia, Cyprus, Saint Kitts and Nevis and the British Virgin Islands. Copies of the court orders for asset seizure have been sent to the relevant jurisdictions.

Sikder Group is alleged to have diverted more than Tk 300 billion (30 thousand crore) from various banks under both real and fictitious identities. Assets held by the Sikder family have been identified in Los Angeles and New York in the United States, the luxury destination of Las Vegas, Abu Dhabi in the United Arab Emirates and Bangkok, Thailand. The family also reportedly owns multiple companies in the United Kingdom, Singapore and Switzerland.

In the case of Orion Group, the court has ordered the freezing of 31 bank accounts belonging to chairman Obaidul Karim and the seizure of 43 acres of land, including a residential flat.

Investigations into NASSA group have revealed five properties owned by chairman Nazrul Islam Majumder in the United Kingdom, one property in the Isle of Man and another in Jersey. Court orders have been issued to freeze these assets. Nabil Group is alleged to have diverted over Tk 150 billion (15 thousand crore) from multiple banks under different names. The court has also ordered the freezing of 191 bank accounts held by 11 members of Summit Group chairman Aziz Khan’s family.

Regarding the Purbachal New Town Project, the ACC has filed a case against former Prime Minister Sheikh Hasina, her sister Sheikh Rehana, Tulip Siddiq and three other members of the Sheikh family, along with several RAJUK officials, a total of 16 individuals for allegedly acquiring government plots unlawfully. Several flats registered under Tulip Siddiq’s name have been located in the United Kingdom. However, investigators have not found any major irregularities involving the Gemcon Group.

Mustafa K Mujeri, former chief economist of Bangladesh Bank, commented to Prothom Alo that the investigation into money laundering has been ongoing for a considerable period with little visible progress. He emphasised that visible action is crucial to building public trust. Recovering laundered funds is a highly challenging process, but it is essential to ensure that no further opportunities for money laundering arise.