Cyprus freezes S Alam’s property

A court in Cyprus has frozen a property owned by Bangladeshi businessman Mohammed Saiful Alam and his wife following a request submitted by Bangladeshi authorities as part of an ongoing criminal investigation into alleged bank fraud and money laundering.

The Nicosia district court passed the order on May 19 freezing the property in Parekklisia after an application by the anti-money laundering unit (Mokas), reports UNB, citing Cyprus Mail, 

The request was made through mutual legal assistance procedures initiated by authorities in Bangladesh.

However, Saiful Alam, founder and chairman of the S Alam Group, denied any wrongdoing.

He acquired Cypriot citizenship in 2016 through the Cyprus citizen-by-investment programme, known colloquially as the “golden passports scheme.”

The property subject to the order is a two-storey residence in Parekklisia.

According to documents submitted to Cypriot authorities, Bangladeshi investigators are examining allegations relating to the operation of a network of companies and financial transactions between 2009 and 2024.

The investigation involves claims of fraudulent lending, unlawful asset accumulation and money laundering.

According to the request transmitted to Cyprus, authorities are investigating allegations that companies linked to Saiful Alam secured substantial loans from a number of financial institutions, including Islami Bank Bangladesh PLC and First Security Islami Bank.

The request states that many of those loans later defaulted and that investigators are examining whether funds obtained through those facilities were transferred abroad through a network of companies and financial structures operating across multiple jurisdictions.

Bangladesh’s central bank governor has publicly described the case as involving more than €8 billion allegedly transferred out of the country. Bangladeshi authorities believe assets connected to the investigation may be located in Cyprus, Singapore and other jurisdictions.

Part of the investigation concerns ACLARE International, a Cyprus registered company acquired by Saiful Alam in 2016 after the purchase of ACLARE Investment Ltd.

Bangladeshi authorities are examining whether the company was used in transactions linked to the movement of funds under investigation.

Court filings also refer to a network of companies and trusts in Cyprus, the British Virgin Islands and Jersey.

Investigators are seeking to determine the ownership structures and financial activity connected to those entities.

Through legal representation with international law firm Quinn Emanuel, he has stated that his investments were funded through legitimate foreign sources and that actions taken against him are unjustified.

He has also initiated proceedings before the International Centre for Settlement of Investment Disputes, arguing that measures affecting his assets, including those subject to freezing orders, violate international investment protection agreements.

The S Alam group owner obtained Cypriot citizenship through the golden passport scheme, which was terminated by the government.

He does not appear in the findings of the Nikolatos Committee report, which examined the operation of the programme.

#Source: Cyprus- Mail