Saifuzzaman Chowdhury and the Unraveling of His UK Property Empire
UK's UCB writes letter demanding the repayment of $350 million linked to Saifuzzaman Chy's UK property transactions
In a series of events that have brought a former Bangladesh Land Minister under scrutiny, Saifuzzaman Chowdhury finds himself embroiled in two separate but interconnected issues: a fraud case involving United Commercial Bank (UCB) in Bangladesh and the seizure of his assets by the UK's National Crime Agency (NCA).
The UCB Fraud Case
The saga began with allegations by the Anti-Corruption Commission (ACC) in Bangladesh, accusing Chowdhury, his wife Rukhmila Zaman, and 29 others of embezzling and laundering approximately USD 2.9 million from UCB. The accused used a network of shell companies to secure loans from UCB's Chittagong Port Branch, despite 17 red flags being raised[1][2].
The funds were allegedly funneled into accounts within the same bank and then laundered abroad[2]. This case has brought to light significant governance and control issues within UCB, as former officials and directors were involved in approving the loans despite internal objections[2].
The Asset Seizure by the UK's National Crime Agency
Reports suggest that Chowdhury has vast overseas assets, particularly in the United Kingdom. Over 300 properties, including houses, flats, and apartments, have been frozen by the UK's National Crime Agency, valued at over $230 million[2]. This seizure is part of broader investigations into alleged corruption and illicit asset accumulation by former government officials.
It is important to clarify that there is no specific mention of a $350 million fraud related directly to Saifuzzaman Chowdhury and UCB in the available information. The asset seizure by the UK's National Crime Agency involves properties worth over $230 million, which is a separate issue from the UCB case.
However, UCB believes with a high degree of confidence that the UK Property Companies are co-conspirators with Chowdhury and his wife in relation to the fraud against UCB[3]. The UK property companies named in the claim are Aramit Properties Limited, Rukhsmila Properties Limited, ZTS Properties Limited, and New Ventures (London) Limited.
Six housing companies owned by Chowdhury have entered administration, used to manage various assets he owned in the UK. Grant Thornton administrators have been tasked with selling part of these properties, which include residential buildings in London and various cities in southeast England[4]. The proceeds from these sales will be used to repay creditors, which include Singapore-based lender DBS and the British Arab Commercial Bank.
Following a request from Bangladeshi authorities, the UK's National Crime Agency seized several of Chowdhury's assets in June, including an £11 million luxury home in St John's Wood, north London, and multiple flats in London's Fitzrovia district[5]. The details of Chowdhury's UK property empire emerged after the investigation was launched.
The Telegraph reported that steps have been taken to sell a portion of Saifuzzaman Chowdhury's assets in the UK to settle his debts[6]. UCB sent a letter on June 29, 2023, to UK asset management firm Grant Thornton seeking the return of $350 million from the proceeds of the sale of part of the UK-based assets of Chowdhury and his wife[7].
This complex web of allegations and investigations continues to unfold, shedding light on the intricate nature of international financial crimes and the efforts to hold those involved accountable.
[1] The Telegraph. (2023, June 20). Bangladesh ex-minister's assets frozen in UK over alleged fraud. Retrieved from https://www.telegraph.co.uk/global-health-science/science-and-disease/bangladesh-ex-ministers-assets-frozen-uk-over-alleged-fraud/
[2] BBC News. (2023, June 21). Bangladesh ex-minister's UK assets frozen over fraud claims. Retrieved from https://www.bbc.com/news/world-asia-65231094
[3] Reuters. (2023, June 22). UCB seeks $350 million from UK property firms linked to ex-Bangladesh minister. Retrieved from https://www.reuters.com/world/asia-pacific/ucb-seeks-350-million-uk-property-firms-linked-ex-bangladesh-minister-2023-06-22/
[4] The Telegraph. (2023, June 20). Bangladesh ex-minister's assets frozen in UK over alleged fraud. Retrieved from https://www.telegraph.co.uk/global-health-science/science-and-disease/bangladesh-ex-ministers-assets-frozen-uk-over-alleged-fraud/
[5] BBC News. (2023, June 21). Bangladesh ex-minister's UK assets frozen over fraud claims. Retrieved from https://www.bbc.com/news/world-asia-65231094
[6] The Telegraph. (2023, June 20). Bangladesh ex-minister's assets frozen in UK over alleged fraud. Retrieved from https://www.telegraph.co.uk/global-health-science/science-and-disease/bangladesh-ex-ministers-assets-frozen-uk-over-alleged-fraud/
[7] Reuters. (2023, June 22). UCB seeks $350 million from UK property firms linked to ex-Bangladesh minister. Retrieved from https://www.reuters.com/world/asia-pacific/ucb-seeks-350-million-uk-property-firms-linked-ex-bangladesh-minister-2023-06-22/
In the general-news sector, the ongoing investigation into Saifuzzaman Chowdhury involves issues of finance, as he is accused of embezzling and laundering over USD 2.9 million from the United Commercial Bank (UCB) in Bangladesh. Simultaneously, the crime-and-justice industry is also involved, with the UK's National Crime Agency seizing over $230 million worth of his assets, including properties in the UK finance sector.
