Nazrul Islam Majumder: chairman of NASA Group and former chairman of Exim Bank. Throughout the long tenure of the Awami League government, he was known as a businessman close to former Prime Minister Sheikh Hasina. He also held the chairmanship of the Bangladesh Association of Banks (BAB) for years running. Using his closeness to Hasina and her government, along with his access at the policymaking level, as a shield, Nazrul became the unannounced mafia don of the country’s banking sector. In the name of loans, he looted about 35,000 crore taka from 26 banks in the country. A large portion of that money was moved abroad instead of being invested domestically. With the proceeds of that looting, he built an empire overseas.
The influence he built within the banking sector by sitting atop the bank owners’ association became one of his greatest sources of power. Various investigations have repeatedly flagged allegations of his influence over bank owners, his closeness to the government, and his access at the policymaking level. Pressure was reportedly applied to collect funds from banks in the name of various government programs and funds. As a result, his influence was visible across a large part of the banking sector. Many in the banking sector say that, in practical terms, he was the very embodiment of fear within the sector at the time. Although they would not say so openly, most bank owners privately referred to him as a “bank extortionist.”
An Anti-Corruption Commission (ACC) investigation has found that a large portion of that money went to various countries, including the U.K., the Isle of Man (a self-governing British Crown dependency), Jersey and Hong Kong. Various companies were also set up abroad, substantial assets were purchased, and bank accounts were opened. The ACC has now uncovered much of this startling information. A court has ordered the freezing of 5.3 million pounds held in an account at UBS Bank in Jersey, in the name of a company beneficially owned by Nazrul Islam Majumder and his wife. Dhaka Metropolitan Senior Special Judge Shahjahan Kabir issued the order Tuesday in response to an ACC application.
The application said Nazrul Islam Majumder, his family members and associates took out loans totaling about 35,000 crore taka from 26 banks in the country through various irregularities. A large portion of this money was embezzled and laundered abroad, with the names of the countries and specific locations mentioned above identified as destinations for the laundered funds.
Sources involved in the ACC investigation said Nazrul Islam Majumder used multiple methods to withdraw large sums from banks and move them abroad. The ACC has obtained information on fund transfers made through bank loans, commercial transactions and various institutions. A large portion of this money was later found to have gone into companies and bank accounts held abroad. In the words of officials involved in the investigation, Nazrul was like a “magic master” when it came to the complex techniques of moving and laundering money.
5.3 million pounds in Jersey
One of the assets identified in the ACC’s investigation into Nazrul’s overseas holdings is a financial entity called One Investments Limited. Registered at an address in the Isle of Man, the entity was established on May 17, 2019. An account in its name was opened at UBS Bank in Jersey on Oct. 2 of that year. As of an Aug. 6 statement, the account held 5.3 million pounds. The ACC’s investigation found that the entity is beneficially owned by Nazrul Islam Majumder and his wife, Nasrin Islam.
However, fearing that these funds might be moved and to prevent the transfer of assets, the ACC applied to the court to freeze the money and assets. The court ordered, through the relevant authorities in Jersey, that the bank account of One Investments Limited and any movable or immovable assets held in the entity’s name be frozen or seized.
A web of loans across 26 banks
Allegations that Nazrul withdrew massive sums from banks date back a long time. The ACC’s investigation has uncovered information on loans worth thousands of crore taka taken from various banks in the names of different NASA Group entities. Loans were taken from multiple banks using the same method — sometimes in the name of one group entity, sometimes in the name of an affiliated entity. Allegations have also surfaced of loan approvals and rescheduling granted under special consideration in some cases. Relevant documents and the investigation also indicate that funds from one bank were used to cover liabilities at another. More than 2,100 crore taka in loans were taken from a single bank in the names of various NASA Group entities, information that had been reported earlier. Of this, about 998 crore taka is alleged to have been disbursed under special consideration. Bangladesh Bank inspections have also uncovered various irregularities related to these loans. A large portion of the loans were centered on several NASA Group entities, particularly those involved in the ready-made garment and yarn businesses. The list of banks includes both state-owned and private banks. The ACC’s latest investigation puts the total value of these loans at around 35,000 crore taka.
Bank funds looted, assets built abroad
The most alarming aspect of the allegations is that a portion of the massive sums taken from banks was moved out of the country. The ACC’s investigation is examining various channels used to transfer money abroad. The investigation has also uncovered allegations that import-export trade was used to move money. Investigators have obtained information on techniques such as over-invoicing goods to send excess funds abroad, keeping the proceeds of exported goods abroad rather than repatriating them, and under-invoicing goods to divert the remaining funds through other channels.
Foreign companies have emerged as another channel for money laundering. The ACC’s investigation identified several companies linked to Nazrul’s interests in the U.K., Hong Kong, the Isle of Man and Jersey. Information on business activities, investments and asset purchases conducted through these companies abroad is also being examined.