Bank Resolution Act: A window for fund recovery, not individuals’ rehabilitation

The Bangladesh Bank did not issue any directive regarding the reopening or closure of S Alam Group’s commercial operations, which remain suspended due to loan defaults, Finance Minister Amir Khosru Mahmud Chowdhury told parliament yesterday.

The comment came after opposition MP Hasnat Abdullah asked how the Chattogram-based business group could be considered for reinstatement without repayment of dues and whether any compromise had been reached.

In a starred question, Cumilla-4 lawmaker Hasnat asked about the government’s steps to recover laundered money and projected recovery this fiscal year.

In response, Khosru said the Bank Resolution Act, 2026, has created fresh opportunities for all stakeholders, including shareholders and investors. The changes had “opened a window”, he said, stressing that the objective was not to facilitate the return of any specific individual but to ensure funds were deposited back into the banking system.

Khosru said the most important step in recovering assets illegally transferred abroad is to send a Mutual Legal Assistance Request (MLAR) to the relevant countries under the Mutual Legal Assistance in Criminal Matters Act, 2012.

A joint investigation team comprising officials from the Anti-Corruption Commission, the Criminal Investigation Department, the Central Intelligence Cell, customs and intelligence has filed cases in Bangladeshi courts over alleged money laundering by the S Alam Group and the Beximco Group.

MLARs have been sent to four countries -- British Virgin Islands, Cyprus, Jersey and Singapore -- for S Alam Group, and to the UK and the UAE for Beximco Group.

Civil and criminal proceedings are both being pursued, along with asset tracing through four international law firms.

However, recovery is a complex and lengthy legal process, and it is not yet possible to estimate how much money can be recovered within the current or next fiscal year, Khosru said.

In a separate reply, he said the Bangladesh Financial Intelligence Unit (BFIU) had frozen Tk 243.60 crore across 662 bank accounts and Tk 813.56 crore across 227 beneficiary owner’s (BO) accounts linked to individuals associated with S Alam Group.

Later, 11 intelligence reports were sent from the BFIU to the law enforcement agencies for further investigation regarding the transactions of the S Alam Group.

In this context, the government formed a joint investigation team regarding the money laundering case of the S Alam Group.

A total of 27 cases have been filed against S Alam Group in the courts of Bangladesh by the said investigation team, out of which charge sheets were submitted in three cases.

Based on the information received by the Joint Search and Investigation Team, the court has seized fixed assets (land, flats, houses) worth Tk 4,264 crore of S Alam Group in Bangladesh and shares worth Tk 6,692.34 crore of 2,680 bank accounts and Tk 24,810.88 crore of 171 companies.

In addition, the Bangladesh court has issued a judgement to seize one house, 62 bank accounts and assets of 14 companies and six trust funds worth Tk 3,222.70 crore abroad.

In this manner, the banks affected by the illegal laundering of S Alam Group’s defaulted loan money abroad have signed a non-disclosure agreement and started the process of appointing four international law firms on ‘No Recovery, No Fee’ terms to recover their loan money.