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Bangladesh Financial Intelligence Unit (BFIU) has alleged that the S Alam Group misappropriated and laundered around Tk 225,000 crore through fraudulent loans and overseas transfers, according to its 2024–25 annual report.
The report presents the case under the pseudonym "S Group", while officials familiar with the matter confirmed that the case study refers to the S Alam Group.
According to the BFIU, the group used political influence and support from a state intelligence agency during the previous Awami League government's tenure to gain control of seven banks and one financial institution. It then placed family members and close associates on the boards of those institutions, allowing it to dominate lending decisions.
The report alleges that the group obtained loans worth Tk 225,000 crore under its own name and through proxy entities. Of the total, Tk 90,000 crore was borrowed through 43 directly affiliated companies, Tk 98,000 crore through anonymous or shell companies, and the remaining Tk 37,000 crore through other channels.
BFIU said the collateral backing these loans had an estimated market value of only Tk 32,000 crore, highlighting what it described as serious weaknesses in credit risk assessment and banking oversight.
The report further alleges that the funds were moved abroad using trust accounts, international trade transactions and informal money transfer networks, including hundi. It claims assets linked to the group were acquired in Singapore, Malaysia, Cyprus and the United Arab Emirates (UAE) using the transferred funds.
The agency also said several key individuals associated with the group had obtained citizenship in three different countries, a factor it said could complicate efforts to recover allegedly laundered assets.
The BFIU described the case as one of the largest banking fraud and money laundering schemes in Bangladesh's history.
A request for comment sent to S Alam Group by email regarding the allegations had not received a response as of Tuesday, according to the report.
https://thedailyexpress.news/news/business/1f185852-c173-68e0-b670-a08b138d1af8