Bangladesh’s stolen wealth: UK properties expose ties to Sheikh Hasina’s inner circle

As Sheikh Hasina watched Dhaka shrink in the distance from a military helicopter, chaos unfolded below. Mobs had overtaken her lavish residence, and more than 1,000 people were reported dead, many others injured, in violent clashes sparked by a crackdown on student-led protests. 

These events, later called the Monsoon Revolution, forced Hasina to flee to India in August, where she has remained in exile since then.

Now, as Bangladesh works to recover after her 16-year rule, the country‍‍`s interim government is focusing on getting back funds allegedly stolen by Hasina‍‍`s government and its allies. 

The authorities say this money is essential for rebuilding the country.

The Bangladeshi government claims that several powerful families and businesses close to Hasina’s Awami League party used corrupt practices to get hold of billions of pounds. 

Investigators believe much of this money was moved out of Bangladesh using the hundi system, a common way of transferring money in South Asia.

Where did all this illicit money go? 

According to the new government and investigators, a large amount of it ended up in the UK, which is known as a place where people hide questionable wealth.

The interim government in Bangladesh has asked for help in locating about £13 billion in stolen assets. 

Investigators have followed a trail that leads to high-end properties in London, pointing to the possibility that much of the wealth is tied up in real estate.

An investigation by The Observer of the Guardian, in partnership with Transparency International, has uncovered that prominent figures in Bangladesh’s political and business circles, closely linked to the deposed regime, have spent close to £400 million on UK properties. 

The actual amount could be even higher.

The network of properties, which includes around 350 buildings, stretches from small flats to luxurious mansions in some of London’s most exclusive areas. The owners include influential businessmen and former ministers from Hasina’s government. 

These individuals have denied the allegations, saying they are politically motivated and that the new government is using the investigations as a way to target its enemies.

This investigation has raised serious questions about how British institutions, including banks, law firms, and estate agents, allowed these individuals to buy expensive properties in the UK. 

Some MPs and campaigners are now asking whether the UK is doing enough to stop its property market from becoming a safe place for dirty money.

One of the biggest concerns is whether current laws are strong enough to detect the real source of the money behind these purchases.

Transparency International has called this situation the "first test" for the UK to show that it is truly committed to becoming a global leader in anti-corruption efforts.

The Minister’s Properties and Family Wealth

Soon after Sheikh Hasina’s departure from Bangladesh, Salman F Rahman, one of her closest advisers, was arrested while allegedly trying to escape by boat on Dhaka’s river system. 

Rahman, who was in charge of private industry and investment, was one of the most powerful people in Hasina’s government.

Now facing money-laundering charges, Rahman’s bank accounts and those of his family members have been frozen by Bangladesh’s Financial Intelligence Unit (BFIU).

Rahman is the co-founder and vice-chairman of Beximco, one of the largest conglomerates in Bangladesh, with businesses in pharmaceuticals, textiles, and other industries.

Under Hasina’s government, Beximco received large loans from state-owned banks, some of which remain unpaid. 

The company also had the exclusive contract to distribute the Oxford-AstraZeneca Covid vaccine in Bangladesh, a country with over 170 million people.

Now, Beximco’s financial dealings are under investigation by Bangladesh’s tax authority, which is looking into the company’s debts, which reportedly total £1 billion. 

The country’s central bank has also appointed a custodian to manage Beximco’s operations.

Beximco is a family-run company. Rahman’s son, Ahmed Shayan, and his nephew, Ahmed Shahryar, both held senior roles at the company and are now under investigation. 

Shayan’s assets in Bangladesh have been frozen.

As investigators follow the trail of money, they’ve found that some of it appears to have ended up in Grosvenor Square in the exclusive area of Mayfair, London. 

Rahman’s family or companies connected to them own or have stakes in seven luxury properties there. 

Many of these properties were bought through offshore companies, some registered in the British Virgin Islands (BVI).

One of these properties, bought for £26.75 million in March 2022, is owned by Rahman’s son, Ahmed Shayan, through an offshore company. He also owns another flat in the same square worth £35.5 million. 

Meanwhile, his cousin, Ahmed Shahryar, owns four other properties in the area, worth a total of £23 million.

Lawyers for the Rahman family insist that these properties were bought following all UK financial rules, including anti-money laundering regulations. 

They argue that the investigations in Bangladesh are politically motivated and part of a dispute over business practices.

But Ahsan Mansur, the governor of Bangladesh’s central bank, disagrees. He told The Observer: “It’s a legitimate legal process… against those who have taken resources from Bangladesh. We want to get it back.”

The Land Minister’s Wealth

Another former government official under investigation is Saifuzzaman Chowdhury, who was the Land Minister under Hasina. 

Chowdhury is accused of acquiring large amounts of wealth through illegal means, including investments in properties in the UK.

Chowdhury’s bank accounts have been frozen by the BFIU, and a Dhaka court has ordered the seizure of his assets, including his properties.

Chowdhury and his family are believed to own more than 300 properties in the UK, valued at at least £160 million, according to the UK Land Registry.

One of these properties is a £14 million mansion in London, which Chowdhury was seen outside last month. 

He has yet to respond to The Observer’s requests for comment, but has previously stated that the money used to buy these properties came from legitimate business ventures outside Bangladesh.

Businessmen Linked to the Regime

Another family under investigation is the Sobhan family, who run the Bashundhara Group, one of Bangladesh’s largest business conglomerates. The family has invested heavily in luxury properties in the UK.

The Sobhan family owns two large homes in the prestigious Wentworth estate in Surrey, valued at £13 million. 

These properties were bought through offshore companies based in the British Virgin Islands. Another property, a French-style mansion, is being built and is owned by one of Sobhan’s sons through a company in the Isle of Man.

The Sobhan family has been investigated for corruption before but was cleared of any wrongdoing. 

However, following the fall of Hasina’s government, new investigations have been launched, focusing on their failure to repay government loans.

In October, a Dhaka court imposed a travel ban on six members of the Sobhan family, and their bank accounts have been frozen. 

The authorities are now closely watching their properties, which could be seized as part of a larger effort to recover stolen assets.

Two of the family’s London properties, including a £10 million mansion in Kensington, have raised concerns, especially regarding financial centres like Dubai and Singapore, which may have helped move the money to the UK.

The Sobhan family has strongly denied any wrongdoing, saying they will defend themselves against all charges.

Other Businessmen Under Investigation

Nazrul Mazumder, the founder of the Nassa Group, a major Bangladeshi conglomerate, is also under investigation for money laundering. 

Mazumder’s family owns five luxury properties in Kensington, London, worth a combined £38 million. 

These properties are believed to be rented out, generating steady income for Mazumder while he faces charges in Bangladesh.

Mazumder’s representatives deny the allegations, saying the properties were bought with legal funds.

The Role of UK Financial Institutions

British banks, law firms, and estate agents have played an important role in managing the wealth of these Bangladeshi elites. 

For example, the Rahman family used Credit Suisse to finance their £26.75 million property in Grosvenor Square, and Barclays provided loans for other properties in London. 

Law firms like Charles Russell Speechlys and Jaswal Johnston have also worked with the Rahman family on these deals.

Similarly, the Sobhan family has worked with Orbis London, a real estate consultancy with offices in Liechtenstein, Singapore, and Switzerland.

Campaigners are now calling for stronger anti-money-laundering measures to ensure that money flowing into London’s property market is properly tracked.

Joe Powell, an MP and chair of the All-Party Parliamentary Group (APPG) for anti-corruption, said: “We need stronger anti-money-laundering supervision and enforcement to analyse the source of the wealth flowing through London. 

I support all efforts by the Bangladesh authorities to trace assets they believe may have been improperly acquired.”

Calls for Greater Oversight

Transparency International has warned that the UK remains a top destination for illicit wealth. 

Duncan Hames, policy director at Transparency International, said the UK government should work with international partners to freeze suspicious assets and introduce sanctions.

“There is a real opportunity for the UK to live up to its ambition of becoming the anti-corruption capital of the world,” Hames said.

Prof. Mushtaq Khan, a

corruption expert at SOAS University in London, suggested that part of the UK’s foreign aid budget should be redirected to help Bangladesh recover its stolen assets.

Khan added: “It was the biggest massacre in the history of Bangladesh. We can’t let those people down.”

While British firms involved in these transactions maintain they followed all regulations, campaigners, MPs, and international observers continue to push for more robust action to prevent illicit money from flowing into the UK.