CID initiates legal action against former Padma Bank chairman Nafeez Sarafat and three others over claims of laundering Tk1,613 crore

Money Laundering Charges Against Former Padma Bank Chairman

The Criminal Investigation Department (CID) has charged former Padma Bank Chairman Chaudhry Nafeez Sarafat along with three others in a significant money laundering case involving Tk 1,613 million.

Based on the CID’s initial investigation, Sarafat, along with Dr. Hasan Taher Imam, acquired a license for an asset management company called Race Management PLC in 2008. Between 2008 and 2013, this company was responsible for managing ten closed-end mutual funds, a number that has now grown to thirteen. The investigation reveals that Sarafat and his associates misused these funds for personal gain, according to a press release from CID.

It was uncovered that Sarafat, his wife Anjuman Ala Shahid, and Dr. Imam utilized funds from these mutual funds to purchase shares in what was then Farmers Bank (now Padma Bank), enabling Sarafat to attain a position on the bank’s board. His wife, through similar actions, was also appointed as a director at Southeast Bank.

Further insights from the CID report indicate that the defendants used mutual fund resources to acquire the securities firm Multi Securities, misappropriating funds through its trading license. Additionally, allegations suggest that Sarafat used funds from Padma Bank for investments in various strategic equity funds through affiliated entities, including Padma Bank Securities.

The investigation has unveiled extensive forgery and fraud, comprising activities such as opening bank accounts, acquiring land from RAJUK, and establishing several companies and institutions. The CID asserts that these fraudulent actions facilitated money laundering activities abroad.

These allegations have garnered attention via social media and traditional news outlets, claiming that Sarafat and his associates pressured Best Holdings to invest Tk 500 million in bonds, laundering the money internationally and purchasing numerous properties. This led the CID’s Financial Crimes Unit to initiate an investigation.

As part of their findings, the CID identified 78 bank accounts associated with Sarafat, his wife, and related individuals or entities. These accounts showed total deposits of Tk 1,809.75 million with withdrawals amounting to Tk 1,805.8 billion. Currently, 21 of these accounts remain active, holding a combined balance of Tk 29.21 million.

Foreign Holdings

The investigation also uncovered extensive foreign assets linked to Sarafat and his wife. They are connected with several companies in Canada, including Canadian Maple Strategic Wealth LP, Race Management PCL, and Race Financial Management Inc. There are also offshore companies in the British Virgin Islands named Blue Ocean Supply Ltd and Lhotse Summit Investments Ltd.

Moreover, they maintain 15 joint accounts with Standard Chartered Bank in Singapore. Sarafat’s son is reported to hold 76 foreign bank accounts with various institutions like the Royal Canadian Bank and the Toronto-Dominion Bank.

Additionally, Sarafat possesses a three-room apartment and a five-room villa in Dubai. Dr. Hasan Taher Imam reportedly operates an account associated with a company named Next Frontiers Fund PTE Ltd in Singapore.

The CID has found considerable domestic assets held by the defendants as well. Following a thorough analysis of the evidence, they determined that Tk 1,61,368,659 was acquired through fraudulent means, including forgery and money laundering offenses, which are violations under the Prevention of Money Laundering Act, 2012 (amended in 2015).