Cyprus Freezes S Alam Assets Over €8bn Probe

Authorities in Cyprus have frozen a property owned by controversial Bangladeshi businessman and S Alam Group founder chairman Mohammad Saiful Alam and his wife as part of an ongoing criminal investigation into alleged bank fraud and money laundering involving nearly €8 billion.

According to reports in local media, the order was issued by the Nicosia District Court on May 19 following a request from Cyprus’ anti-money laundering unit, MOKAS. The move reportedly came in response to a formal request from the Bangladesh government under a mutual legal assistance framework between the two countries.

Saiful Alam has denied all allegations brought against him.

Under the court order, a two-storey residential property owned by Alam in the Parekklisia area of Cyprus has been seized.

Documents submitted by Bangladeshi investigators to Cypriot authorities allege that Bangladesh has been examining a network of companies and financial transactions conducted between 2009 and 2024. The investigation focuses on allegations of fraudulent loans, illicit wealth accumulation, and money laundering.

Investigators are also examining Aclare International, a Cyprus-registered company allegedly owned by Alam, along with a network of trusts and companies based in Cyprus, the British Virgin Islands, and Jersey.

The Cyprus court’s order came just one day after a Bangladeshi court sentenced Saiful Alam and 10 of his relatives and associates to five months in prison in a separate loan-related case.

The case involved allegations that nearly €6 million in loans taken from Islami Bank Bangladesh for purchasing 134 buses by an S Alam Group affiliate were misused, as the buses were allegedly never bought.

However, Bangladeshi authorities say the investigation extends far beyond a single case. In communications with Cypriot authorities, investigators alleged that companies linked to Saiful Alam obtained massive loans from several Bangladeshi financial institutions, including Islami Bank Bangladesh and First Security Islami Bank, with a large portion later turning into defaulted loans.

Investigators are examining whether the funds were transferred abroad through complex international corporate structures.

Bangladesh Bank Governor recently claimed that more than €8 billion had been siphoned out of the country through the alleged scheme. Authorities suspect part of the money was invested in properties in Cyprus, Singapore, and other countries.

Saiful Alam’s international legal counsel, Quinn Emanuel, said in a statement that all of his overseas investments were financed through legitimate foreign sources and described the legal actions against him as “unjustified and politically motivated.”

Alam has already initiated legal proceedings at the International Centre for Settlement of Investment Disputes (ICSID), arguing that the asset seizures violate international investment protection agreements.

Saiful Alam obtained Cypriot citizenship in 2016 under the country’s controversial citizenship-by-investment programme, widely known as the “golden passport” scheme. The programme was later discontinued following widespread criticism and controversy.

However, a report by Cyprus’ Nicolatos Committee, formed to investigate irregularities in the passport scheme, did not mention Saiful Alam by name.