DBS Group said it raised flags about a former lawmaker in Bangladesh who had amassed a US$265 million real estate empire and reportedly borrowed money from the Singapore bank.
The bank made 19 loans to former Land Minister Saifuzzaman Chowdhury, who has come under fire for his array of properties from London to New York, according to a report by Al Jazeera. Chowdhury was a close ally of deposed Prime Minister Sheikh Hasina.
“DBS’ controls had proactively flagged certain issues prior to the reporting in question, following which an appropriate review had been initiated,” DBS said in response to queries from Bloomberg News. Singapore’s largest bank declined to comment on specifics, and whether it lent money to Chowdhury.
The bank had refused to open an account for Chowdhury because he is a “politically-exposed person”, but later provided loans to his businesses until January, Al Jazeera reported. That categorisation typically attracts extra scrutiny in several jurisdictions, including in the UK and Singapore, even though these individuals can still engage in business transactions.
DBS said it has in place “rigorous” due diligence and anti-money laundering controls, which employees are expected to enforce.
Chowdhury told Al Jazeera that his properties were purchased with funds earned by his businesses in the UK, US and the UAE, and that he is a victim of a political witch-hunt. He is the most prominent of Hasina’s allies to make headlines for his overseas wealth.
The politician served as land minister in Bangladesh for five years until January. Since 2016, the companies that he owns have built up a real estate empire of more than 350 properties worth about US$265 million, according to a Bloomberg analysis.
The politician was re-elected but lost his cabinet post after national elections in January, which were boycotted by the opposition. When Hasina fled the country seven months later after deadly anti-government protests, several of her ministers and allies followed, including Chowdhury, Al Jazeera said. BLOOMBERG
