DHAKA, May 19, 2025 (BSS) - The Anti-Corruption Commission (ACC) has approved two cases against S Alam Group Chairman Mohammad Saiful Alam and 67 others over the alleged embezzlement of Tk 11.02 billion (1,102 crore) from First Security Islami Bank through shell companies under the guise of loans.
 
In the first case, a total of 37 individuals, including Saiful Alam and top officials of the bank have been accused of embezzling Tk 5.49 billion (549 crore) from First Security Islami Bank in the name of a non-existent company, Messrs Safran Trade International.
 
The second case concerns Tk 553 crore embezzled in a similar way through another shell entity named M/S Huda Enterprise, with 31 individuals, including Alam, facing charges. Both schemes were reportedly carried out by manipulating loan approval processes, forging documents, and misusing authority within the banking system.

In the Safran Trade case, the ACC's investigation found that the bank provided Bai-Murabaha investment facilities without proper due diligence.

Loans were approved without updated CIB reports, valid insurance policies, trade licenses, legal clearances, or address verifications.

Despite no repayments being made in subsequent years, the loan limit was repeatedly increased, ultimately reaching Tk 450 crore, far exceeding the approved ceiling of Tk 100 crore.

The ACC found that the embezzled amount of Tk 548.80 crore was transferred through multiple accounts to various firms including M/S Shahaji Traders and M/S Jinnah Corporation. Of that, around Tk 19.22 crore was later funneled into S Alam Group subsidiaries, such as S Alam Vegetable Oil Ltd. and S Alam Refined Sugar Ltd., pointing to potential money laundering offenses.

The Huda Enterprise case mirrored the same method. In November 2016, the Andarkilla branch of the bank granted Tk 105 crore in loans without following mandatory procedures. Between 2018 and 2023, the loan accounts were unlawfully renewed and expanded, allowing the group to embezzle a total of Tk 553.21 crore.

Funds from this scheme were routed through Union Bank to fictitious firms including Venus Tradings Ltd., Reasonable Traders Ltd., and Abdul Awal & Sons Ltd. Eventually, Tk 130 crore was transferred to S Alam Group-linked firms, further evidencing money laundering activities.

The ACC has brought charges under multiple sections of the Penal Code (Sections 409, 109, 420, 467, 468, 471), the Prevention of Corruption Act, 1947 (Section 5(2)), and the Money Laundering Prevention Act, 2012 (Sections 4(2) and 4(3)).

Among the accused are several senior banking officials, including FSIBL Managing Director (on leave) Syed Waseque Md. Ali, former Deputy Managing Directors, and heads of investment, treasury, and risk management divisions. The owners of the shell companies-Mahfuzul Islam of Safran Trade and Md. Alamgir Huda of Huda Enterprise-are also named as prime suspects.

The ACC said its investigations point to a systematic abuse of banking authority, involving collusion between bank insiders and influential business groups, resulting in large-scale embezzlement and financial crime. Legal proceedings are expected to begin following formal charges and further inquiry.