Controversial Bangladeshi conglomerate S Alam Group appears to have significant investments in the British Virgin Islands (BVI), a known tax haven and base for shell companies.
According to investigators probing allegations of money laundering against the group, Chairman Saiful Alam Masud set up 18 shell companies – typically used for money laundering – in the BVI between 2011 and August 2024, without the required approval from the Central Bank of Bangladesh .
The revelation comes as Bangladesh steps up its crackdown on corruption and financial crimes committed by influential figures including S Alam, who had close ties to the recently fallen Awami League government, which ruled the country for more than 15 years from 2009. ruled.
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On November 17, the interim government’s chief adviser, Muhammad Yunus, announced that a list of 150 influential people suspected of corruption and money laundering had been drawn up. An investigation was already underway against 79 of them.
Days earlier, Bangladesh Bank Governor Ahsan H Mansur said efforts to recover laundered assets were making progress. “The net has been cast and now it’s just a matter of reeling it in.”
A member of the task force involved in these efforts informed TBS that the discovery of S Alam’s BVI interests was a direct result of the government’s focused determination to locate and recover laundered assets.
The official, speaking on condition of anonymity, described the findings as “a major breakthrough” in the ongoing investigation.
In late October, BB Governor Mansur said that tycoons linked to the ousted AL regime had siphoned around $17 billion from the banking sector, while S Alam alone seized at least $10 billion.
Total effort required
Birupaksha Paul, professor of economics at the State University of New York and former chief economist of the Bangladesh Bank, told TBS that two businessmen – S Alam and Salman F Rahman – are responsible for the destruction of the Bangladeshi banking sector, with the previous government playing a role . a key role in this.
“The governor said S Alam alone has laundered $10 billion abroad. The government must make every effort to repatriate these funds, including initiating government-to-government talks, especially with Singapore, to facilitate the return of S Alam’s assets there,” he said. said.
The group reportedly has significant investments in Singapore, Malaysia, Cyprus and Europe.
However, he warned that while the process is lengthy, legal processes could take years, and political changes with the upcoming elections could complicate matters. “These business groups can also work with the next elected government to secure their interests.”
At a meeting of the task force on November 19, details about the overseas assets of S Alam and other groups were highlighted, according to sources from both domestic and international organizations working with the task force.
S Alam’s shell companies in BVI
In the British Virgin Islands, Canali Logistics Pte Ltd was first established in 2011 as S Alam, the task force source said.
From 2016 to 2020, ten more companies were founded under S Alam. They are: Honeywell International Pte Ltd, Golden Trails International Pte Ltd, Hamilton International Pte Ltd, Hazel International Pte Ltd, Livonia Pte Ltd, Lu Shui International Pte Ltd, Pittsdale International Pte Ltd, Springfield International Pte Ltd, Qing Shui International Pte Ltd and Trivoli Trading Pte Ltd.
In addition, six more companies were founded between 2021 and August 2024. They are Adair International Pte Ltd, Greenwich International Pte Ltd, Linear International Pte Ltd, Marico International Pte Ltd, Wavepac International Pte Ltd and Zenita International Pte Ltd.
In addition, a company called Peacock Property Holdings Limited was incorporated on May 22, 2019 under the name S Alam.
In the case of Hazel International Pte Ltd, 70% of the shares are owned by Saiful Alam, while the remaining 30% are owned by his wife, Farzana Parvin.
Every Bangladeshi person or institution must seek approval from the central bank before investing abroad. The S Alam Group was not given this permission, sources said.
The 2017 Paradise Papers leak exposed the offshore transactions of some of the most powerful people and companies in the world, putting the British Virgin Islands in the spotlight as a well-known tax haven.
Located more than 17,000 kilometers away from Singapore, this area offers significant tax benefits, including no income tax, corporate tax or capital gains tax. In addition, it provides privacy rights, allowing companies to operate without publicly disclosing the names of their shareholders or directors on official documents.
Why use tax havens?
Shell companies, often created to hold assets or facilitate transactions with minimal operational activities, thrive in tax havens because of low taxes, confidentiality and lax regulation. Popular jurisdictions such as the Cayman Islands, British Virgin Islands, Bermuda and the Channel Islands attract companies and individuals looking for secrecy and tax benefits.
Investigations by the International Consortium of Investigative Journalists (ICIJ) reveal widespread exploitation of these refuges. The findings highlight how shell companies are used to evade taxes, launder money and obscure ownership, exploiting regulatory loopholes for financial gain.
Repatriating money is difficult, but it can be done
Dr. Iftekharuzzaman, executive director of Transparency International Bangladesh, told TBS that the Bangladesh Bank and the Bangladesh Financial Intelligence Unit (BFIU) must have documentary evidence to prove that the money was laundered since they were involved.
“While recovering laundered money is not impossible, it is a complex and lengthy process,” he said.
He said it must be legally established that S Alam’s companies in BVI are financed by laundered money from Bangladesh. “Although it is often claimed that the money is smuggled, no country will return it unless it is legally proven,” he added. “Once established, diplomatic efforts with those countries should follow.”
Therefore, Iftekharuzzaman emphasized the need for coordination among five key agencies: BFIU, the Anti-Corruption Commission (ACC), the Criminal Investigation Department (CID), the National Board of Revenue (NBR) and the Attorney General’s office.
Other overseas assets of S Alam
S Alam reportedly started building his business empire in Singapore in 2009 by registering multiple companies under his own name and that of his wife.
A recent study by TBS revealed that the group has invested around US$700 million (approximately Rs 6,300 crore) in purchasing three hotels and retail space in a mall in Singapore.
Previous reports, such as that of The Daily Star, suggested that S Alam has built a business empire worth at least $1 billion in Singapore.
According to confidential documents of Bangladesh Bank, S Alam is alleged to have embezzled nearly Tk2 lakh crore from Bangladesh through fraudulent loans.
These loans were channeled through fake documents and laundered abroad through various import-export companies, as revealed by sources in the Central Bank of Bangladesh and the Financial Intelligence Unit.
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