No BB directive on resuming or shutting down S Alam Group operations: Finance minister

Finance Minister Amir Khosru Mahmud Chowdhury today (21 April) told parliament that Bangladesh Bank has not issued any directive regarding resuming or shutting down the commercial operations of S Alam Group, which had been halted amid loan default concerns.

Responding to a question from Cumilla-4 lawmaker Hasnat Abdullah, the minister provided details of ongoing investigations and asset seizures linked to allegations of corruption and money laundering against the group.

Hasnat asked, "On what grounds were the commercial operations of S Alam Group, which were halted due to corruption and loan default realities, resumed?"

In response, the minister said that based on allegations of corruption and illegal overseas money laundering, Bangladesh Financial Intelligence Unit (BFIU) froze 662 bank accounts linked to individuals associated with S Alam Group, containing Tk243.60 crore, and 227 BO accounts holding Tk813.56 crore; across seven phases.

He further said that BFIU sent 11 intelligence reports to law enforcement agencies for further inquiry and investigation into the group's financial transactions. 

Subsequently, the government formed a joint investigation team to probe money laundering allegations against the group.

The minister added that based on the findings, a total of 27 cases were filed in Bangladeshi courts against S Alam Group, with charge sheets submitted in three of them.

According to the joint investigation team's findings, the court ordered the seizure of fixed assets worth Tk4,264 crore; including land, flats and houses, along with Tk6,692.34 crore in 2,680 bank accounts and shares worth Tk24,810.88 crore in 171 companies.

He also said that a court ordered the seizure of overseas assets, including one house, 62 bank accounts and assets equivalent to Tk3,222.70 crore in 14 companies and six trust funds. To implement the order, Mutual Legal Assistance Requests were sent to four countries; the British Virgin Islands, Cyprus, Jersey and Singapore.

Four Red Notices were also issued against individuals linked to the group, he added.

The minister further said that alongside criminal proceedings, civil recovery measures have been initiated to retrieve laundered funds. Affected banks have begun the process of appointing four international legal firms on a "No Recovery, No Fee" basis, after signing non-disclosure agreements, to recover defaulted loans allegedly laundered abroad.

"These initiatives have paved the way for recovering illegally laundered funds of S Alam Group from abroad," he said.

He also clarified that BFIU has not taken any step to reactivate the group's bank accounts.

"Moreover, Bangladesh Bank has not issued any directive regarding resuming or suspending the commercial operations of S Alam Group that were halted due to loan default realities," the finance minister added.

S Alam Group assets worth Tk35,767cr frozen

Finance Minister Amir Khusru Mahmud Chowdhury also informed parliament today that assets worth Tk35,767 crore linked to S Alam Group have been frozen through various legal and administrative measures, as authorities intensify efforts to recover allegedly laundered funds.

Responding to a written query from Bagerhat-2 MP Shaikh Monzurul Haque Rahad, the minister said initiatives are underway to bring back money siphoned abroad and settle claims of affected creditors.

The finance minister added that both criminal and civil legal mechanisms are being pursued in parallel, along with the engagement of internationally reputed legal firms to trace and recover foreign assets.

The minister also said BFIU has formed a Stolen Asset Recovery Division, aimed at coordinating recovery efforts and developing compensation plans for affected banks.