Over the years, the stories of powerful individuals in Bangladesh have surfaced, and with them, a reflection of the country’s economic growth and challenges. Among these figures, Saiful Alam Masud—commonly known as S Alam—stands out, not just for his business ventures but for the controversy surrounding the vast empire he quietly built abroad. As the head of the S Alam Group, his name became synonymous with wealth and influence in Bangladesh. But beneath the surface lies a different story—one of exploitation, capital flight, and misuse of Bangladesh’s banking system, all while the general public remained in the dark.
The extent of S Alam’s business dealings in Singapore, worth over USD 1 billion, speaks volumes about how far-reaching his influence had become.
Yet the truth behind these investments unveils a web of financial manipulation, where Bangladesh’s banks were systematically drained, and the country’s legal system failed to act in time. The scandal of S Alam's foreign ventures is not just about the money; it is a tale of a business figure who used his power to defraud the country while establishing a luxurious life abroad. What follows is an account of how one man manipulated the system, and the costs Bangladesh now faces in the wake of his actions.
The Hidden Wealth of a Public Figure
For decades, S Alam built his reputation on being one of the most successful businessmen in Bangladesh. From commodity trading to banking, his reach spanned numerous sectors, making him a household name. But as his prominence grew, so did whispers of illicit activities—rumors that became harder to ignore as evidence mounted of his growing wealth abroad.
An investigation by The Daily Star exposed the extent of S Alam’s empire in Singapore. Over the past decade, he had acquired multiple properties, including two hotels, high-end residential properties, and commercial spaces, all while keeping his name out of official records.
Documents reveal that he funneled an estimated USD 411.8 million into Singapore through various channels, yet not a single one of these transactions was cleared by Bangladesh Bank, the regulatory authority responsible for overseeing the legal outflow of capital.
The irony of S Alam’s growing presence in Singapore is that while his wealth flourished abroad, Bangladesh’s economy continued to struggle. The investments made in foreign soil were not just unethical but illegal, as Bangladesh’s Money Laundering Prevention Act of 2012 explicitly prohibits the transfer of funds abroad without proper clearance. S Alam, however, found ways to circumvent these regulations through a network of shell companies, offshore entities, and tax havens. His empire was built on the systematic abuse of loopholes, and the country paid the price.
The Empire in Singapore
By 2009, S Alam had already established a foothold in Singapore through his company, Canali Logistics, which he founded with his wife, Farzana Parveen. The company quickly grew, amassing real estate assets that far exceeded the legal limits for Bangladeshi investors.
Over the next decade, S Alam continued to expand his holdings, with major acquisitions that raised eyebrows in financial circles. These included two landmark hotels—the Grand Imperial Hotel (later rebranded as Hilton Garden Inn) in Little India, purchased for USD 177 million, and the Ibis Novena Hotel, acquired for USD 126 million.
In addition to these luxury properties, S Alam secured a 27,000 square foot retail space in Centrium Square, one of Singapore’s most sought-after commercial areas. The purchase, valued at over USD 100 million, solidified his status as a key player in Singapore’s real estate market. But unlike many of his counterparts, S Alam kept a low profile, ensuring that his name was removed from official documents whenever possible. In fact, his companies often operated out of rented office spaces that barely functioned as real business hubs.
Despite his careful efforts to stay out of the spotlight, S Alam’s wealth abroad was no secret to those who knew where to look. Investigators soon discovered that his Singaporean ventures were only a part of a much larger scheme. Offshore accounts, shell companies, and tax havens in places like the British Virgin Islands and Cyprus were all part of the intricate web he wove to keep his fortune hidden from prying eyes.
Manipulating the System: Hundi, Over-Invoicing, and Defaulted Loans
The wealth S Alam accumulated abroad did not come from legitimate business profits. Instead, it was siphoned off from Bangladesh’s financial institutions through a combination of illegal transfers, over-invoicing, and defaulted loans. At the heart of his scheme was the use of hundi, an informal money transfer system often used to move large sums of money across borders without detection. This method allowed S Alam to discreetly funnel millions out of Bangladesh, evading legal oversight and leaving no official paper trail.
Over-invoicing was another key tool in his arsenal. By inflating the value of imports—particularly in commodities like sugar—S Alam was able to transfer excess funds abroad under the guise of legitimate business expenses.
These transactions not only violated Bangladeshi financial regulations but also exploited the country’s banking system, weakening its ability to serve the public.
The most egregious part of S Alam’s scheme, however, involved defaulting on massive loans from Bangladeshi banks. The group’s largest beneficiary was Islami Bank, Bangladesh’s largest private bank, where S Alam held significant influence. An investigation revealed that the S Alam Group had taken out over Tk90,000 crore in loans from Islami Bank alone, accounting for more than half of the bank’s total disbursements. These loans were secured under false pretenses, using fabricated business ventures and shell companies as collateral.
The damage done to Islami Bank and other financial institutions under S Alam’s control is immeasurable. What was once a thriving financial institution fell into crisis, its liquidity strained by the constant outflow of funds to S Alam’s foreign accounts.
The result was not just a financial loss for the banks but a blow to Bangladesh’s economy as a whole. The depletion of resources that could have been used for national development instead went toward funding the extravagant lifestyle of one family.
Political Immunity and Media Gagging
For years, S Alam operated with near impunity, shielded from investigation by his close ties to the political establishment. Under the leadership of Sheikh Hasina, the S Alam Group flourished, protected from the consequences of its actions. Any attempts to investigate or report on his illicit activities were met with resistance, often in the form of court orders that prevented the publication of damning reports.
In November 2022, several leading newspapers, including The Daily Star and Prothom Alo, were served with legal notices after publishing reports detailing the scale of S Alam’s corruption. These notices were part of a larger effort to suppress the media’s coverage of his activities and ensure that the public remained unaware of the extent of his empire.
It wasn’t until the fall of Sheikh Hasina’s government in 2024 that the tide began to turn.
With the resignation of Sheikh Hasina on August 5, 2024, the political landscape in Bangladesh shifted dramatically. The interim government, eager to address the corruption that had plagued the country for years, launched a full-scale investigation into S Alam’s activities. The Criminal Investigation Department (CID) and the Anti-Corruption Commission (ACC) were tasked with uncovering the truth behind his foreign investments and the billions of takas laundered abroad.
The Complex Web of Offshore Entities
One of the most significant challenges investigators face is untangling the complex web of offshore entities used by S Alam to hide his wealth. In addition to his Singaporean holdings, S Alam and his wife are linked to several companies in the British Virgin Islands and Cyprus. These tax havens, known for their secrecy and lack of financial transparency, provided the perfect cover for S Alam to continue his operations without detection.
Among the most notable of these entities is Peacock Property Holdings Ltd, a British Virgin Islands-registered company that controls much of S Alam’s wealth abroad. Similarly, ACLARE International, a Cypriot company founded in 2016, played a key role in managing his European investments. By routing his funds through these offshore companies, S Alam was able to shield his assets from both Bangladeshi and international authorities.
The Ongoing Investigation and Its Implications
As the investigation into S Alam’s illegal activities continues, the full extent of his empire is slowly coming to light. The CID and ACC have already uncovered evidence of Tk1,13,245 crore laundered abroad, and the inquiry is far from over.
The fallout from this scandal is likely to be far-reaching. Bangladesh’s financial institutions, already struggling under the weight of corruption, will need to undergo significant reform to prevent future abuses of power. Moreover, the international community is now paying closer attention to the flow of illicit funds from Bangladesh, raising the stakes for both S Alam and the country’s financial regulators.
Path to Recovery and Prevention: Steps for the Government and Regulators
In light of the S Alam scandal, the Bangladeshi government and financial regulators have several actions they can undertake to recover misappropriated funds and prevent similar occurrences in the future.
First and foremost, strengthening regulatory frameworks is crucial. This involves enhancing monitoring and enforcement mechanisms to oversee large financial transactions, ensuring compliance with laws like the Money Laundering Prevention Act of 2012.
Additionally, improving cross-border cooperation by collaborating with international financial institutions and governments can aid in tracking and repatriating funds siphoned off into offshore accounts.
Reforming banking practices is another critical step. Conducting thorough audits of banks involved in fraudulent schemes can help restore trust in the banking sector through transparency and accountability.
Moreover, revamping the loan disbursement process by implementing more rigorous checks and balances can prevent the approval of loans based on false pretenses.
Legal and institutional reforms are necessary to support these efforts. Expedited legal proceedings against individuals and entities involved in the scandal are essential to recover stolen assets, utilizing international legal avenues to address crimes involving foreign investments. Strengthening the Anti-Corruption Commission (ACC) by providing it with more resources, authority, and autonomy will enhance its effectiveness in investigating and prosecuting financial misconduct.
Promoting corporate governance is also vital. Requiring regular disclosure of foreign investments by Bangladeshi business entities will ensure legality and transparency in their financial dealings.
Additionally, developing policies to hold corporate leaders accountable for ensuring compliance with financial regulations both domestically and abroad is imperative.
Increasing public awareness and involvement can significantly bolster these efforts. Launching campaigns to educate the public about the risks and signs of financial corruption encourages citizens to report suspicious activities. Engaging civil society and media can support this process, as independent media and organizations play a critical role in uncovering corruption and holding powerholders accountable.
By implementing these comprehensive measures, Bangladesh can work towards reclaiming lost assets and safeguarding its financial systems against future abuses, setting a precedent for transparency and integrity in governance.
Conclusion: A Country Betrayed by Its Own
S Alam’s illegal empire represents one of the most significant financial scandals in Bangladesh’s history. His ability to manipulate the system, evade detection, and amass a fortune abroad while defaulting on loans at home is a damning indictment of the country’s financial oversight. The damage he has done to Bangladesh’s banking sector and economy is immeasurable, and the consequences of his actions will be felt for years to come.
As the investigation moves forward, Bangladesh has an opportunity to hold S Alam accountable and recover the wealth that was stolen from its people. The question now is whether the country can learn from this scandal and implement the necessary reforms to ensure that such corruption is never allowed to happen again. For the people of Bangladesh, the fall of S Alam’s empire is a reminder of the price they have paid for the unchecked greed of a few powerful individuals.
