Cyprus Freezes Property of Bangladeshi Businessman Amid Fraud Probe

A two-storey residence in Parekklisia, Cyprus, owned by Bangladeshi businessman Mohammed Saiful Alam, has been frozen by the Nicosia district court. This action follows a request from Bangladeshi authorities as part of an ongoing investigation into alleged bank fraud and money laundering.

The freezing order, issued on May 19, was made after an application by Cyprus's anti-money laundering unit, Mokas, under mutual legal assistance procedures initiated by Dhaka. Saiful Alam, the founder and chairman of the S Alam Group, acquired Cypriot citizenship in 2016 through the country's former "golden passports" scheme.

Bangladeshi investigators are examining allegations of fraudulent lending and unlawful asset accumulation linked to a network of companies and financial transactions spanning from 2009 to 2024. Authorities in Dhaka allege that companies associated with Saiful Alam secured significant loans from financial institutions, including Islami Bank Bangladesh and First Security Islami Bank, many of which later defaulted. However, Saiful Alam maintains his innocence and denies any wrongdoing.

Adding to the complexity, a Bangladeshi court sentenced Saiful and ten associates to five months' imprisonment just a day after the Cyprus property was frozen, in connection with a loan of approximately €6 million granted by Islami Bank to an S Alam Group subsidiary. Investigators are probing whether funds were transferred abroad through a network of companies and trusts registered in Cyprus, the British Virgin Islands, and Jersey. Saiful Alam's legal team has argued that his investments were funded through legitimate foreign sources and has initiated proceedings before the International Centre for Settlement of Investment Disputes, claiming the measures against his assets violate international investment protection agreements.