Financial Hub Singapore Tied to Bangladesh Corruption, Money Laundering
The fall of Sheikh Hasina’s government in Bangladesh has triggered fresh investigations into the vast fortunes of business elites with close political ties, including Saiful Alam Masud, better known as S Alam. As chairman of S Alam Group, he is accused of transferring over SGD 700 million from Bangladesh to Singapore through illicit means. They used methods such as bills of exchange and over-invoicing, bypassing approval from the Bangladesh Bank. His investments in Singapore include luxury properties and hotels, such as the Hilton Garden Inn and Ibis Novena Hotel. This has raised concerns over the use of Singapore’s financial system to launder wealth gained through corrupt practices.
Muhammed Aziz Khan, chairman of Summit Group, faces similar scrutiny. Summit, one of Bangladesh’s largest conglomerates, has thrived under political patronage, especially during the Hasina administration. The Panama Papers for offshore financial dealings also named Khan, who is now a Singaporean permanent resident. Investigations into Summit Communications, part of his group, revealed attempts to transfer millions of dollars in shares to foreign entities without proper regulatory approval. Despite these allegations, Khan remains influential, featuring among Singapore’s richest individuals according to Forbes.
Singapore seen as safe financial haven, lacks extradition laws with Bangladesh
Singapore has also emerged as a safe haven for other controversial political figures. Former Thai Prime Minister Thaksin Shinawatra, visited Singapore in 2023 before returning to Thailand after 15 years in self-exile. Thaksin and his sister, Yingluck are known for their family business empire. The Thai military ousted both for corruption. His stopover raised eyebrows as Singapore has become a frequent destination for ousted leaders. Similarly, Sri Lanka’s former President Gotabaya Rajapaksa fled to Singapore in 2022 after mass protests ousted him over corruption and economic mismanagement. Singapore’s stability and strict banking secrecy laws have made it an appealing destination for high-profile figures seeking refuge.
In another major case, a group of Chinese nationals carried out a large-scale money laundering scandal in Singapore. In 2023, authorities arrested 10 individuals linked to laundering over SGD 3 billion through Singapore’s financial system. The money came from illicit activities, including illegal gambling operations across Southeast Asia. The group used shell companies and funneled the funds into luxury properties, cars, and other high-value assets in Singapore. This case highlighted the vulnerabilities in Singapore’s financial system and prompted stronger regulatory measures.
Bangladesh lacks an extradition treaty with Singapore. Thus, this complicates Bangladesh’s efforts to repatriate individuals like S Alam, who face money laundering accusations. Singapore cooperates with international law enforcement through Interpol. However, the absence of formal extradition agreements allows such individuals to remain out of reach. In response to growing scrutiny, Singapore has ramped up its anti-money laundering efforts. In 2023, the government established an inter-ministerial committee to strengthen regulations, and banks like DBS and Citi have intensified their due diligence processes for high-net-worth clients. These steps reflect Singapore’s commitment to safeguarding its financial integrity while addressing concerns about its role in facilitating the flow of illicit wealth.
