CID files case against former Padma Bank chairman Nafeez Sarafat, 3 others on allegations of laundering Tk1,613 crore

The Criminal Investigation Department (CID) has filed a money laundering case against former Padma Bank chairman Chowdhury Nafeez Sarafat and three others in connection with the laundering of Tk1,613 crore.

According to CID's preliminary investigation, Sarafat, along with his associate Dr Hasan Taher Imam, obtained a licence in 2008 to operate an asset management company named Race Management PLC. Between 2008 and 2013, the company secured management responsibilities for 10 closed-end mutual funds, now expanded to 13. Sarafat and his associates used these funds for illegal personal gain, reads a press release issued by the CID today (28 November).

Investigators found that Sarafat, his wife Anjuman Ara Shahid, and Dr Hasan Taher Imam invested mutual fund money to purchase shares of the then Farmers Bank (now Padma Bank), enabling Sarafat to secure a position on the bank's board. Through similar manoeuvres, his wife was appointed a director of Southeast Bank.

The CID report states that the accused later used mutual fund money to purchase a brokerage house, Multi Securities, and diverted funds through its trading licence. Sarafat also allegedly used Padma Bank's funds to invest in various strategic equity funds through companies linked to him, including Padma Bank Securities.

The investigation uncovered large-scale forgery and fraudulent activities, including the opening and operation of BO and bank accounts, acquisition of RAJUK plots, and establishment of various companies and institutions—activities that CID says paved the way for laundering funds abroad.

Widespread allegations–circulated through social media and traditional media–accused Sarafat and his associates of pressuring Best Holdings for Tk500 crore bond investments, laundering money abroad, and purchasing multiple houses and apartments. These prompted CID's Financial Crime Unit to begin its inquiry.

CID found 78 bank accounts operated in the names of Sarafat, his wife, son Raheeb Safwan Sarafat Chowdhury, and associated individuals or businesses. These accounts saw deposits totalling Tk1,809.75 crore and withdrawals of Tk1,805.58 crore. Of these, 21 accounts remain active with a current combined balance of only Tk29.21 lakh.

Foreign holdings

Investigators also identified extensive foreign holdings.

Sarafat and his wife own or operate entities such as Canadian Maple Strategic Wealth LP, Race Management PCL, and Race Financial Management Inc in Canada; Offshore companies Blue Ocean Supply Ltd and Lhotse Summit Investments Ltd in the British Virgin Islands.

They also maintain 15 joint accounts at Standard Chartered Bank (Singapore) Limited.

His son operates 76 foreign bank accounts across institutions including Royal Bank of Canada, United Overseas Bank (Singapore), Bank of Singapore, and Toronto Dominion Bank.

Sarafat owns a three-room flat and a five-room villa in Dubai.

Dr Hasan Taher Imam operates accounts linked to a company named Next Frontiers Fund PTE Ltd in Singapore.

CID says it also detected substantial domestic assets held by the accused.

After analysing all evidence, CID concluded that  Tk 1,613 crore 68 lakh 64 thousand 659 was acquired through fraud, forgery, and domestic and foreign currency laundering - offences that fall under Sections 2(sha)(5)(6) and 3(14) of the Money Laundering Prevention Act, 2012 (amended 2015).

Accordingly, CID's Financial Crime Unit lodged a case under Section 4(2) of the same act at Gulshan Police Station.