Assets of S Alam and two others frozen in Europe: When will the money return to Bangladesh?

Bangladesh has intensified efforts to recover assets allegedly laundered abroad during the previous Awami League administration, with authorities securing asset-freezing orders in several foreign jurisdictions while acknowledging that the legal battle to repatriate the funds could take years.

The latest development came from Cyprus, where a court in the capital, Nicosia, reportedly ordered the seizure of a luxury property owned by Saiful Alam, chairman of S Alam Group. According to local Cypriot media, the order was issued at the request of the Bangladeshi government as part of an ongoing investigation into allegations that large sums of money were transferred overseas through fraudulent bank loans.

Saiful Alam has repeatedly denied wrongdoing through previous statements issued to the media and is pursuing legal remedies.

Assets traced across multiple jurisdictions

The Bangladesh Financial Intelligence Unit (BFIU), the financial intelligence wing of Bangladesh Bank, has been investigating the destinations of allegedly laundered funds for more than 18 months.

Investigators have identified assets and financial links in around 18 countries and territories, including the United Kingdom, the United States, Canada, Switzerland, Australia, Cyprus, the United Arab Emirates, Singapore, Malaysia, Hong Kong, Thailand, the Philippines, India, Luxembourg, the British Virgin Islands, the Isle of Man, Jersey, Guernsey and St Kitts and Nevis.

The government has formally requested authorities in these jurisdictions to identify and freeze assets belonging to individuals under investigation.

According to Bangladesh Bank, authorities in the United Kingdom, the Isle of Man and Cyprus have already frozen certain assets in response to those requests.

Bangladesh Bank spokesperson Arif Hossain Khan said foreign governments must follow their own legal procedures before taking action.

"They cannot simply freeze assets immediately upon another country's request. They must first determine whether their domestic laws permit such action and whether sufficient legal grounds exist," he said.

Six major cases prioritised

A government task force led by Bangladesh Bank has prioritised legal proceedings against six business groups accused of involvement in large-scale financial crimes and money laundering.

The cases involve S Alam Group, Aramit Group, Beximco Group, Sikder Group, Nassa Group and Orion Group.

Finance Minister Amir Khosru Mahmud Chowdhury recently informed parliament that legal proceedings had already begun.

Authorities say some overseas assets belonging to Saiful Alam of S Alam Group, former land minister Saifuzzaman Chowdhury of Aramit Group and members of the family of Beximco Vice-Chairman Salman F Rahman have already been frozen in the United Kingdom, Cyprus and the Isle of Man.

However, officials acknowledge that freezing assets does not automatically mean they can be returned to Bangladesh.

To recover the assets, Bangladesh must first convince foreign courts that the properties or funds were acquired using money illegally transferred from Bangladesh.

Long legal process ahead

Experts say proving those allegations abroad will be one of the government's greatest challenges.

Transparency International Bangladesh (TIB) Executive Director Dr Iftekharuzzaman noted that international experience suggests only a small proportion of laundered assets are ultimately recovered.

"Globally, countries often recover only around one percent of illicit financial flows, and even those cases typically take between seven and 20 years, or even longer," he said.

He explained that foreign courts require extensive documentary evidence demonstrating that assets originated from illegally transferred funds.

Dr Mahfuz Kabir, Research Director at the Bangladesh Institute of International and Strategic Studies (BIISS), said collecting such evidence would be particularly difficult because many of the investments entered destination countries through complex international financial structures.

"In many cases, the investments have passed through third countries before reaching their final destination. Establishing that chain of transactions with sufficient legal evidence will be challenging," he said.

International legal teams appointed

To strengthen its recovery efforts, Bangladesh has engaged experienced international law firms specialising in asset recovery.

According to Bangladesh Bank, nine international legal firms have already been contracted by affected banks, with the central bank acting as coordinator.

Officials said the agreements are based on a "no win, no fee" arrangement, meaning legal fees will only be paid if assets are successfully recovered.

"This means neither the government nor the participating banks have to pay legal fees upfront," Arif Hossain Khan said.

Seeking greater international cooperation

The government is also attempting to establish legal cooperation agreements with key destination countries.

Bangladesh has proposed mutual legal assistance arrangements with the governments of the United Kingdom, the United States, Canada, Switzerland, Australia, the United Arab Emirates, Singapore, Malaysia, Thailand and the administration of Hong Kong.

Officials say the UAE, Malaysia and Hong Kong have responded positively, while several other jurisdictions have shown limited interest in bilateral agreements.

Authorities acknowledge that differences between legal systems remain a significant obstacle.

In many countries, funds entering as foreign investment are not automatically considered illegal unless criminal conduct is proven in court.

Officials therefore believe diplomatic engagement will be as important as legal action.

Government vows to continue recovery efforts

The BNP-led government says recovering allegedly laundered public funds remains one of its highest priorities.

Prime Minister Tarique Rahman recently told parliament that the money belonged to the people of Bangladesh and pledged to pursue every available legal avenue to recover it.

Foreign Affairs Adviser Humaiun Kobir also said diplomatic engagement with relevant governments was continuing alongside legal proceedings.

He said the government would seek the return of public funds regardless of whether they were located in Europe, the Middle East or elsewhere.

Accused deny allegations

Representatives of S Alam Group, former minister Saifuzzaman Chowdhury and Beximco Group could not immediately be reached for comment on the latest developments.

However, they have consistently denied the allegations in previous public statements and have indicated that they will contest the cases through legal channels.

According to media reports, Saiful Alam has retained international legal firms and has also filed proceedings before the International Centre for Settlement of Investment Disputes (ICSID) in Washington in connection with the freezing of assets.

While experts remain cautious about Bangladesh's chances of recovering substantial amounts of money, they say that even a single successful case could establish an important legal precedent and send a strong message that illicitly transferred public assets can be pursued across international borders.