S. Alam’s Property Frozen in Cyprus; New Turn in €8 Billion Money Laundering Investigation
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A court in Cyprus has ordered the freezing of a property owned by Mohammed Saiful Alam, chairman of the Bangladeshi conglomerate S. Alam Group, and his wife. The order was issued at the request of Bangladeshi authorities as part of an ongoing investigation into bank fraud and money laundering.
The news agency Cyprus-Mail confirmed the matter in a report.
According to the report, the Nicosia District Court issued the order on May 19. The court's decision followed an application by MOKAS, the country's anti-money laundering unit. Previously, Bangladeshi authorities had sought assistance from Cyprus under a mutual legal assistance agreement.
The frozen property is a two-story house located in the Parekklisia area of Cyprus. However, Mohammed Saiful Alam has denied all allegations brought against him.
The report further states that relevant agencies in Bangladesh are investigating allegations of alleged bank fraud, illegal wealth accumulation, and money laundering committed through various companies and financial transactions between 2009 and 2024.
A day after the property freeze order, a court in Bangladesh sentenced 11 people, including Saiful Alam, his family members, and associates, to five months in prison in a loan scam case involving approximately €6 million from Islami Bank. It is alleged that while this loan was taken under the guise of purchasing 134 buses for an S. Alam Group subsidiary, those buses were never actually bought.
The request letter sent by Bangladeshi authorities stated that S. Alam-related companies took out large amounts of loans from various financial institutions, including Islami Bank Bangladesh and First Security Islami Bank. Most of these loans later defaulted. Investigators are looking into whether that money was laundered abroad through various companies and financial structures.
The Governor of Bangladesh Bank claims that over €8 billion has been laundered out of the country. Bangladeshi authorities believe that a portion of the assets under investigation is located in countries like Cyprus and Singapore. A Cyprus-registered company owned by S. Alam, Aclare International, has also been included in this investigation.
He acquired ownership of Aclare Investment Limited by purchasing it in 2016. Investigators are examining whether this company was used to transfer the funds currently under investigation.
Documents submitted to the court also mention a network of multiple companies and trusts based in Cyprus, the British Virgin Islands, and Jersey. Investigators are reviewing the ownership structures and financial activities of these entities.
In a statement provided through the international law firm Quinn Emanuel, Saiful Alam claimed that his investments originated from legitimate foreign sources and that the actions taken against him are unjustified. He further alleged that the restrictions imposed on his assets violate international investment protection agreements. In connection with this, he has also filed a case with the International Centre for Settlement of Investment Disputes.
S. Alam obtained citizenship of Cyprus in 2016 through the country's "Golden Passport" program, which was later canceled amid widespread criticism. However, his name did not appear in the investigation report of the Nicolatos Committee, which was formed to look into the program. (Source: Cyprus Mail).
