No move to reopen S Alam operations

Finance Minister Amir Khasru Mahmud Chowdhury has told parliament that Bangladesh Bank has not issued any directive regarding the reopening or permanent closure of S Alam Group’s commercial operations, which remain suspended due to loan defaults.

Responding to a question from Cumilla-4 MP Hasnat Abdullah, the minister made it clear that there is no possibility of resuming the group’s operations without settling its outstanding liabilities. He ruled out any form of compromise, emphasising that financial discipline is a core principle of economic governance.

He also defended his party’s previous tenure in government, stating that there had been no major concerns over macroeconomic management, financial discipline or irregularities in the capital market during that period.

At the same time, the minister expressed confidence that defaulted funds could be recovered. He said legal proceedings are ongoing against individuals accused of siphoning off bank funds, including those who have fled abroad. Efforts to recover assets are being pursued through both intergovernmental cooperation and private sector channels.

Highlighting the scale of the issue, the lawmaker noted that Islami Bank Bangladesh Limited alone has about Tk92,000 crore in defaulted loans, of which nearly Tk80,000 crore is linked to S Alam Group. He added that Janata Bank holds around Tk25,000 crore in defaulted loans associated with Beximco Group, raising concerns over the recovery of allegedly laundered funds.

In response, the minister said that recovering assets held abroad largely depends on sending Mutual Legal Assistance Requests (MLARs) under the Mutual Legal Assistance in Criminal Matters Act, 2012.
A joint investigation team comprising the Anti-Corruption Commission, the Criminal Investigation Department, customs intelligence and other agencies has already filed multiple cases over alleged money laundering involving S Alam Group and Beximco Group.

He said MLARs have been sent to the British Virgin Islands, Cyprus, Jersey and Singapore in connection with S Alam Group, while requests related to Beximco Group have been sent to the United Kingdom and the United Arab Emirates. Alongside criminal proceedings, civil actions are also under way, with four international law firms engaged to trace overseas assets.

However, the minister cautioned that asset recovery from foreign jurisdictions is a lengthy and complex process, dependent on legal cooperation and the ability to establish proof of illicit transfers. As such, it is difficult to estimate how much can be recovered within the current or next fiscal year.

In a separate reply, he said the Bangladesh Financial Intelligence Unit (BFIU) has frozen Tk243.60 crore across 662 bank accounts and Tk813.56 crore in 227 BO accounts linked to individuals associated with S Alam Group. The agency has also shared multiple intelligence reports with law enforcement bodies, leading to further investigations.

So far, 27 cases have been filed against the group, with charge sheets submitted in three. Based on investigation findings, courts have ordered the seizure of significant domestic assets, including land, flats, company shares and bank deposits. Overseas assets — ranging from properties and bank accounts to corporate holdings — have also been targeted under court directives.

The minister added that affected banks have begun appointing international law firms on a “no recovery, no fee” basis to pursue assets abroad, providing a potential pathway for recovering laundered funds.
He reiterated that the BFIU has taken no steps to reactivate the group’s bank accounts and confirmed that the central bank has issued no instructions regarding the resumption or closure of S Alam Group’s operations.