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Published : 30 Jan 2025, 04:15 AM
A trio of state agencies is joining forces to recover funds allegedly “laundered” by deposed prime minister Sheikh Hasina, her family members and 10 business conglomerates in Bangladesh.
The Anti-Corruption Commission, or ACC, will lead the effort, while the Criminal Investigation Department, or CID, and the National Board of Revenue, or NBR, collaborate.
The Bangladesh Financial Intelligence Unit, or BFIU, a financial watchdog that combats money laundering, will coordinate the task.
The accused face charges of bribery, corruption, fraud, forgery, money laundering, and evasion of taxes and duties.
There are also claims of illicit funds being transferred overseas to acquire business ownership, luxury flats, and properties.
A “White Paper on the Economy” submitted to Chief Advisor Muhammad Yunus in December claimed that an average of $16 billion was siphoned off from the country annually during Hasina’s rule.
Yunus and Finance Advisor Salehuddin Ahmed confirmed that efforts are under way to reclaim these funds.
The interim prime minister discussed this issue with representatives of different countries and organisations, including the United States, the United Kingdom, Singapore, the European Union, and the United Nations, and received assurances from them.
Discussions are also ongoing at the diplomatic level.
The business groups under scrutiny are Bashundhara, Beximco, S Alam, Gemcon, Nabil, Nassa, Orion, Sikder, Aramit, and Summit.
The inquiry extends to associated individuals and institutions tied to these groups.
ACC Director General (Prevention) Md Akhtar Hossain told bdnews24.com that 11 investigation teams have been formed.
These teams, working alongside CID and NBR, will probe the allegations of money laundering.
Akhtar said, "The ACC is actively investigating allegations of money laundering and working to recover the laundered funds. Those against whom allegations are raised will be investigated.
“There is no room for favouritism towards any person or group in this process."
He continued, "ACC officials are independent in their investigative process, according to investigation protocols. They are authorised to gather necessary documents and records to prove the crime and even issue summons.
“If sufficient evidence is found, legal action will be taken against the accused."
In an interview with the UK-based publication the Financial Times, Governor Ahsan H Mansur said: “To trace and recover the misappropriated funds, the Bangladesh Intelligence Unit has formed 11 joint investigation teams.”
Md Motiur Rahman Sheikh, CID chief and additional inspector general, told bdnews24.com that the ACC, NBR, and CID will jointly investigate the alleged money laundering involving Hasina, her family, and 10 industrial groups as part of the task force formed for the investigation.
He explained that the national anti-graft agency investigates corruption and money laundering if government officials and employees are involved.
However, in cases where business owners or individuals other than government officials and employees are linked to money laundering, the CID handles the investigation.
“Under this task force, the ACC will lead the investigations into the alleged money laundering cases," said the officer.
On Aug 5, 2024, Hasina and Rehana fled the country in the face of a student-led mass uprising. All of their children live abroad.
Salman F Rahman, the vice chairman of Bangladesh's leading business conglomerate Beximco Group, has been arrested and is currently in jail.
His son, Ahmed Shayan Fazlur Rahman, based in the United Kingdom, recently came into the spotlight following the uproar over corruption allegations involving Tulip Siddiq, the niece of the former prime minister.
This controversy eventually led to Tulip resigning from her position as a UK city minister.
Aziz Khan, the head of Summit Group, has been residing in Singapore for several decades.
Media reports have emerged about the whereabouts of former land minister Saifuzzaman Chowdhury, the head of Aramit Group, who is said to be in the UK.
Similarly, Saiful Alam, the head of the Chattogram-based industrial conglomerate S Alam Group, is reportedly abroad.
However, following the change in power, no other members of their families have been seen in public.
The owners of Bashundhara, Nabil, Orion, Gemcon, and Sikdar Groups have also remained out of the public eye.
Nassa Group’s Chairman Nazrul Islam Mazumdar, has also been arrested and is in jail.
Following the fall of the Awami League government, the Yunus-led interim administration took charge on Aug 8, 2024.
Within just two weeks, reports surfaced that the NBR’s Central Intelligence Cell, or CIC, had begun investigations into the owners of Beximco, Bashundhara, Summit, Orion, and Nassa Groups.
A summary from the Chief Advisor’s Office, citing the ACC, said according to information obtained from “open sources”, there were “financial irregularities” amounting to around $5 billion in Bangladesh’s first nuclear power project in Rooppur.
“Ousted Bangladesh’s prime minister Sheikh Hasina, her Son Sajeeb Ahmed Wazed Joy and niece Tulip Siddiq embezzled $5 Billion from overpriced $12.65 billion Rooppur Nuclear Power Plant through various offshore bank accounts in Malaysia,” it added.
In addition, the ACC has decided to investigate another allegation of $300 million money laundering against Hasina and Joy.
The agency’s Director General Akhter told bdnews24.com, “The investigation team is currently collecting records and documentary evidence related to the corruption allegations against the former prime minister and her family members.”
As part of its inquiry, the ACC has sent letters to several departments to collect documents related to offshore banking accounts and identification papers linked to the longest-serving prime minister and her family.
Letters have also been sent to banks and financial institutions seeking transaction details from the accounts of Beximco Group’s Vice Chairman Salman, Bashundhara Group’s Chairman Ahmed Akbar Sobhan, Summit Group’s Chairman Aziz, Nassa Group’s Nazrul, Orion Group’s Chairman Obaidul Karim, and their family members.
Bank accounts of the business leaders and their family members have reportedly been frozen or seized as part of the ongoing investigations.
The CID attached properties worth around Tk 2.5 billion belonging to Salman, the former prime minister’s advisor on private industry and investment affairs.
In money laundering cases, methods such as layering or shifting assets and trade-based money laundering (concealing illegal funds under legitimate trade) are commonly employed.
These processes involve the concealment of illicit money within legal businesses, making it difficult to detect.
A senior ACC official told bdnews24.com about the complicated process of recovering laundered funds.
He said, "Part of this process involves investigating the allegations and initiating legal proceedings in the country where the money was laundered to begin the recovery process.
“Without taking legal action in the destination country, the chances of retrieving the laundered funds are slim.
The officer continued, "For this, the allegation of money laundering must be proven in the court of the respective country, and the verdict must include orders for the recovery of the laundered funds.
“After that, collaborative efforts with the legal authorities of the country where the laundering took place are essential to retrieve the funds. The scope of this process is extensive."
The official added that as part of the investigation into allegations of offshore asset transfers, the ACC sends Mutual Legal Assistance Requests, or MLAR, through the Attorney General's Office to obtain data and records from the concerned countries.
These countries provide all the information and documents required by their laws.
The ACC official pointed out that by working together efficiently, it is possible to take swift legal action in favour of the accusations, making the return of misappropriated assets entirely feasible.
According to the ACC's investigation and report, the main destinations for money laundering include the US, Australia, Canada, the United Arab Emirates, Singapore, Malaysia, and Switzerland.
In addition, substantial sums have been funneled into the UK, Dubai, India, Cyprus, Hong Kong, and several other Middle Eastern countries.
In its efforts to reclaim these misused funds, the graft watchdog has engaged with several global agencies, such as the Federal Bureau of Investigation, or FBI, the United Nations Office on Drugs and Crime, or UNODC, the EU, the World Bank, and the Asian Development Bank, or ADB.
The ACC says it has sent 71 MLARs to multiple countries seeking help in recovering laundered funds and obtaining relevant information. So far, 27 countries have responded.
ACC FORMS 11 INVESTIGATION TEAMS
The ACC assigned Deputy Director Md Salahuddin to lead the investigation into alleged money laundering by former prime minister Hasina and her family members.
The team includes Assistant Directors Afnan Jannat Keya, AKM Mortuza Ali Sagar, and SM Rashedul Hasan.
This is the only four-member investigation team, while the rest have three members each.
A team led by Deputy Director Sheikh Golam Mawla will probe allegations against Bashundhara Group, with Assistant Directors Md Sajidur Roman and Md Mahmudul Hasan Bhuiyan as members.
Deputy Director Muhammad Zainal Abedin has been tasked with investigating allegations against Beximco Group.
His team members are Deputy Directors Sajjad Hossain and Minhaj Bin Islam.
A team led by Deputy Director Rezaul Karim, along with Assistant Directors Al-Amin and Mortuza Ali, will investigate allegations against Gemcon Group.
Deputy Director Md Masudur Rahman will lead the investigation into Nabil Group, assisted by Assistant Directors Asaduzzaman and Habibur Rahman.
Deputy Director Md Rauful Islam will oversee the probe into NASSA Group, with Assistant Directors Sohakul Islam and Md Abdul Malek on his team.
For Orion Group, Deputy Director Md Rashedur Rahman has been given the responsibility.
His team includes Md Mehedi Musa Zebin and Khorshed Alam.
Deputy Director Tahsin Munabil Haque has been assigned to investigate allegations against S Alam Group, with assistant directors Md Ismail and Mahmudul Hasan as team members.
The ACC has appointed Deputy Director Md Gulshan Anwar Pradhan to probe former land minister Saifuzzaman Chowdhury and his associated businesses.
His team consists of Assistant Directors Md Mainuddin and Muha Shoaib Ibn Alam.
Director Md Manzur Morshed will lead the investigation into Sikder Group, assisted by assistant directors Md Ashiqur Rahman and Md Kamiab Aftahi-Un-Nabi.
Summit Group will be investigated by a team led by Deputy Director Alamgir Hossain, with Assistant Directors Mohammad Jinnatul Islam and Md Nasrullah Hossain as members.
CASES AND INVESTIGATIONS
The individuals and organisations under investigation by the ACC for alleged money laundering are all beneficiaries of the ousted Awami League government following the mass uprising.
Some of them have even held ministerial or ministerial-level positions.
The ACC has already filed multiple cases against former prime minister Sheikh Hasina and her family members.
Ahsanul Alam, son of Saiful Islam, the head of the prominent Chattogram-based industrial conglomerate S Alam Group, has been accused of embezzling billions of taka from Islami Bank. The ACC has filed two cases in this regard.
The Criminal Investigation Department, or CID, has filed 17 cases against 28 individuals, including Salman F Rahman, head of Beximco Group, for allegedly laundering nearly Tk 10 billion under the guise of product exports.
The CID is also investigating allegations of money laundering and other financial irregularities involving Salman and companies owned by Beximco Group.
Another investigation is underway against Salman and other entities associated with Beximco Group for allegedly taking out loans worth Tk 334.7 billion from different banks and laundering them abroad, along with other financial irregularities
The CID has announced plans to attach assets worth approximately Tk 2.5 billion, currently held by Salman and his family members.
The CID is also investigating allegations of land grabbing and money laundering involving Bashundhara Group, with accusations amounting to Tk 1.5 trillion.
Moreover, the CID has begun an investigation into NASSA Group Chairman Nazrul Islam Mazumder for allegedly laundering around $3 million to the United States under the guise of garment exports.
The CID claims to have found evidence of money laundering amounting to Tk 1.13 trillion by S Alam Group boss Saiful and his associates.
The CID revealed that between 2016 and 2021, former land minister Saifuzzaman Chowdhury purchased 620 properties in the United States, United Kingdom, and the United Arab Emirates, with an estimated market value of $480 million.
Saifuzzaman Chowdhury, for business purposes, opened eight companies in the UK and Dubai between 2010 and 2023 under his and his wife Rukmila Jamal's names, with a total value of $217.3 million in fixed and liquid assets, according to the CID.
The CID claims that Saifuzzaman invested in these companies using funds allegedly laundered from Bangladesh.
The ACC has also prosecuted Sikder Group Managing Director Ron Haque Sikder and his brother Rick Haque Sikder for allegations of money laundering abroad.
The cases accuse Ron of laundering around Tk 500 million (based on the exchange rate in 2017) through credit cards, and Rick of laundering approximately Tk 215 million.
[Writing in English by Arshi Fatiha Quazi and Sheikh Fariha Bristy
