CID investigation against conglomerates: Bright start stutters to a halt

After the interim government assumed office, the Criminal Investigation Department (CID) took initiative to investigate companies allegedly involved in money laundering during the regime of the ousted prime minister Sheikh Hasina.

However, within just three months, the initiative seems to have stalled.

"Due to widespread transfers, we are facing a shortage of skilled manpower, which has impeded our investigations," said Special Police Superintendent Basir Uddin, head of the CID's Financial Crime Unit.

On 31 August, CID Media wing officially conveyed to the media that the Financial Crime Unit of the department launched an investigation against S Alam Group over the allegation of laundering Tk1.13 lakh crore.

The CID later confirmed that it had initiated investigations into allegations of money laundering against several prominent entities and individuals, including Beximco Group, Diamond World and its managing director Dilip Kumar Agarwal, Chowdhury Nafiz Sarafat (former chairman of Padma Bank), Rongdhanu Group and its owner Rafiqul Islam, as well as Bashundhara Group Chairman Ahmed Akbar Sobhan and its managing director Sayem Sobhan Anvir.

Sources revealed that the CID has initially identified at least 30 individuals and companies suspected of involvement in money laundering. Notable names on the list include Summit Group, United Group, Nasa Group, former minister Zunaid Ahmed Palak and his wife Jesmin Kanika, as well as Gazi Golam Dastagir and his wife Hasina Gazi.

"Initially, we started investigations against 19 individuals and companies, but additional names have since been added to the list," said Azad Rahaman, special police superintendent of the CID's Media Wing.

On 18 September, the CID filed 17 cases against Ahmed Sohail F Rahman, chairman of Beximco Group, and Salman F Rahman, the company's vice-chairman, along with their sons and 24 others, accusing them of laundering around $83 million under the guise of export trade.

"They laundered the money through the export of goods using 93 letters of credit [LCs] from Janata Bank between 2021 and 2024. However, the proceeds from these exports were never repatriated to Bangladesh," said Basir Uddin, after filing the cases on 18 September.

Despite these actions, nearly two months have passed since the filing of cases against Beximco Group, with no cases yet filed against other companies currently under CID investigation.

The CID stated that cases are filed only if the preliminary investigation provides sufficient evidence of involvement in money laundering.

The Business Standard spoke with multiple CID officials involved in the primary investigation, who revealed challenges in obtaining information from the Bangladesh Financial Intelligence Unit (BFIU). Additionally, an ongoing major reshuffle within the department has further disrupted progress, they say.

"I sent a letter to the BFIU over two weeks ago requesting the bank transaction statements of the accused and their family members, but I haven't received the information yet," said an inspector, speaking on condition of anonymity.

Special Police Superintendent Basir Uddin acknowledged the issue but noted that the situation has since improved.

"There were delays due to manpower shortages, but since November, we've been receiving information in a timely manner," he said.

According to sources, nine officials from the CID's Financial Crime Unit, including five inspectors, have been transferred recently, causing significant disruptions to ongoing investigations. The unit typically consists of 35-40 officials, and more transfers are currently in process.

A sub-inspector, speaking on condition of anonymity, said the transfer of an inspector who was leading the investigation into a major conglomerate's money laundering allegations has caused delays in the progress of the case.

"The investigation has now been reassigned to another inspector who is already managing another case. This will inevitably delay the completion of the preliminary investigation," said the sub-inspector.

He further noted that some of the newly transferred officials lack the expertise required to handle complex financial crime cases.

"This has become an additional burden for those of us who have been working here for years," he added.

Acknowledging the challenges, Basir Uddin, head of the CID's Financial Crime Unit, said the unit operates differently due to its specialised nature.

"Frequent transfers have impacted our activities, but we are continuing the investigations despite these limitations," he said.

CID Chief Matiur Rahman Sheikh said transfers are a routine part of police operations. However, in this instance, specialised units were not given adequate consideration during the reshuffling process.

"As a result, there is a skills gap among some of our new personnel, which has impacted the progress of investigations. Nevertheless, we remain hopeful that this issue will be resolved soon," he added.