Nicosia: 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 issued the order on May 19, targeting the property in Parekklisia after an application was made by the anti-money laundering unit, Mokas.
According to United News of Bangladesh, the request for freezing the property was made through mutual legal assistance procedures initiated by authorities in Bangladesh. Despite the legal actions, Saiful Alam, founder and chairman of the S Alam Group, has denied any wrongdoing. He acquired Cypriot citizenship in 2016 through the Cyprus citizen-by-investment programme, widely known as the ‘golden passports scheme.’
The property affected by this order is a two-storey residence located in Parekklisia. As per documents submitted to Cypriot authorities, Bangladeshi investigators are scrutinizing allegations related to the operation of a network of companies and financial transactions spanning from 2009 to 2024. The scope of the investigation includes claims of fraudulent lending, unlawful asset accumulation, and money laundering.
According to the request transmitted to Cyprus, authorities are probing allegations that companies linked to Saiful Alam secured substantial loans from numerous financial institutions, including Islami Bank Bangladesh PLC and First Security Islami Bank. It is alleged that many of these loans later defaulted, prompting investigators to explore whether the funds obtained were transferred abroad through a network of companies and financial structures operating across multiple jurisdictions.
Bangladesh’s central bank governor has publicly stated that the case involves more than £8 billion allegedly transferred out of the country. Bangladeshi authorities suspect that assets connected to the investigation may be located in Cyprus, Singapore, and other jurisdictions.
A significant part of the investigation focuses on ACLARE International, a Cyprus-registered company acquired by Saiful Alam in 2016 following the purchase of ACLARE Investment Ltd. Bangladeshi authorities are examining whether the company was involved in transactions related to the movement of funds currently under investigation. Court filings also mention a network of companies and trusts in Cyprus, the British Virgin Islands, and Jersey, with investigators aiming to determine the ownership structures and financial activities linked to these entities.
In response to the allegations, Saiful Alam, through legal representation with international law firm Quinn Emanuel, has stated that his investments were funded through legitimate foreign sources and that actions taken against him are unjustified. He has initiated proceedings before the International Centre for Settlement of Investment Disputes, arguing that measures affecting his assets, including those subject to freezing orders, breach international investment protection agreements.
The S Alam Group owner obtained Cypriot citizenship through the golden passport scheme, which has since been terminated by the government. Notably, he does not appear in the findings of the Nikolatos Committee report, which examined the operation of the programme.