Bangladeshi tycoon’s alleged US$1 billion money laundering empire in Singapore exposed

SINGAPORE: Last Tuesday, the Singapore Police Force’s operation against a money laundering group that saw ten individuals arrested and assets with an estimated combined value of around S$1 billion (equivalent to US$737 million) seized sent shockwaves across the city-state.

What many in Singapore are not aware of, however, is a shocking development that took place earlier in the same month, where a Bangladeshi tycoon, Mohammed Saiful Alam, the owner of S Alam Group, has reportedly established a business empire in Singapore worth approximately US$1 billion, without obtaining any permission from Bangladesh Bank (BB) for investments or fund transfers abroad — an offence that carries a penalty of up to 12 years in jail and a fine double the amount transferred abroad.

The report entitled “S Alam’s Aladdin’s Lamp,” published by Bangladeshi English-language daily newspaper, The Daily Star on 4 August, highlighted that although the central bank had granted permission for 17 companies to invest abroad, the S Alam Group’s name was notably missing from the list.

It has been alleged that Saiful Alam acquired multiple properties, including hotels and homes, in Singapore while attempting to conceal his involvement.

The publication pointed out that as of 10 January this year, the BB sanctioned around US$40.15 million for global foreign investments, a far cry from Saiful’s reported US$411.8 million on two hotels and a retail space in Singapore since 2009.

The report indicated that Saiful Alam and his wife were listed as directors of Wilkinson International Pte Ltd, a company registered in Singapore. This company had assets valued at nearly USD 1 billion in 2021 and exhibited expenditures exceeding its earnings.

“While financing could mean both equity and borrowing, analysts looking at the statements noted that since Alam and his wife were the sole shareholders at least until the end of 2020, this amount would potentially have to be bank borrowings or cash loans, and not equity.” – The Daily Star

The report also highlighted that the couple possesses properties in Singapore that have been transferred to trust funds.

Since Singapore abolished estate duty in 2008, income distributions from Singaporean trusts are tax-exempt. Additionally, successors can be added as beneficiaries of a Singaporean trust without incurring any estate duty.

Following the report and public outcry, the Bangladesh High Court ordered a comprehensive investigation on 6 August into the alleged establishment of Saiful’s business empire in Singapore.

According to the Bangladeshi daily newspaper, The Business Standard, the bench, led by Justice Md Nazrul Islam Talukder and Justice Khizir Hayat, directed the Bangladesh Anti-Corruption Commission (ACC) and the Bangladesh Financial Intelligence Unit (BFIU) to conduct a thorough inquiry into the matter and submit a comprehensive report within two months from 6 August 2023.

The High Court has also summoned the editor of The Daily Star to present the documents that formed the basis of the published report within the following four weeks.

ACC lawyer Khurshid Alam Khan said that the court had scheduled the next hearing for 10 October.

Transparency International Bangladesh’s executive director stated that this scenario might indicate illicit financial transfers, particularly if legitimate foreign income sources are lacking.

It was revealed that S Alam Group’s chairman and managing director, Saiful, resides in Singapore, according to newspaper report.

On top of the alleged monies transferred by Saiful Alam, around US$1 billion owned by a former minister convicted of war crimes, is alleged to be residing in a Singaporean bank.

This was said by ACC lawyer Khurshid to The Business Standard back in 2020. Although this information is confirmed by ACC and other agencies, no official acknowledgement has been made.

The lawyer said the laundered capital is recovered through due legal process and mutual cooperation between the countries.

When questioned about the complexities in reclaiming the laundered money, Khurshid mentioned, “Typically, bank accounts have designated nominees, yet this particular account lacks one.”

Furthermore, he said, “No claims on the funds have been made by his heirs, hindering our efforts to recover the money.”

Insiders suggest that relevant agencies are steadily progressing as per the legal protocols.

The ACC representative clarified their limited involvement, saying they cannot act on the funds in Singapore unless the owner seeks them. The chance of recovering the funds under these circumstances is slim.

However, Khurshid added, “We’ve consulted the legal frameworks and alerted the Singaporean government about the nature of the funds. They’ve requested the necessary documentation from us.”

However, no public report or update on the matter has appeared to have been published since then.

A report from Global Financial Integrity in 2019 suggests that US$52.74 billion has been laundered from Bangladesh over the past seven years, primarily through import-export fraud.