In the British Virgin Islands, Bangladeshi businessman Md Showkat Ali Chowdhury has built a clandestine empire of shell companies through which he laundered millions of dollars over the years.
Several businessmen from Chattogram’s ship-breaking industry have joined his offshore network, established in the overseas territory of the Great Britian.
An investigation by TIMES of Bangladesh has uncovered this opaque network run by Showkat, one of the leading figures in the country’s ship-breaking sector.
Records of the past 17 years reveal that three shell companies, registered in the British Virgin Islands (BVI), were used in multiple transactions. At least seven Bangladeshi businessmen were involved in these transactions, and each deal was linked to Showkat’s SN Corporation.
The TIMES investigation began with a draft intelligence report by the Bangladesh Financial Intelligence Unit (BFIU), which was left incomplete as the entire probe team was removed. The unfinished report noted that Showkat Ali Chowdhury had imported scrap vessels through three companies in the British Virgin Islands through Standard Chartered Bank.
Investigators wrote, “The beneficiary entities appear to be interrelated and, based on the circumstances, seem to be shell companies.” The report further stated that the bank failed to exercise due diligence in preventing money laundering when opening those letters of credit (LCs).
Following this lead, TIMES found that the money-laundering syndicate led by Showkat in the BVI has been active since at least 2008. Over the years, a series of shell firms were incorporated there, and through them, nine Bangladeshi companies owned by seven businessmen conducted circular transactions.
The offshore service provider used by the syndicate, Vistra (BVI) Ltd, was fined $277,000 by the territory’s government in October 2024 for violating anti-money-laundering laws, according to official sources.
TIMES found that the three core shell companies in Showkat’s network are Red Ruby Group Ltd, Talent Mile Ltd, and Columbia Seas Ltd – all registered through Vistra (BVI) Ltd.
A shell company is an entity that legally exists only on paper but has no actual business or assets. Its primary purpose is often to facilitate money laundering, tax evasion, or asset concealment. Offshore companies, by contrast, are typically incorporated in low-tax, high-secrecy jurisdictions, enabling individuals or corporations from other countries to move or hide wealth.
Records of some global organisations reveal that Showkat’s three shell companies routinely traded with his own SN Corporation and several other Bangladeshi ship-breaking firms. These include Sagorika Ship Breaking Industry, owned by Md Sirajuddoula; Baraka Ship Breaking, owned by Muhammad Shamsul Alam; KR Ship Recycling Yard and NB Steel, both owned by Taslim Uddin; Taihua Steel Enterprise, owned by Mohammad Ali; Mahinur Ship Recycling Ltd and Bob Recyclers, owned by SM Nurunnabi; and Seashore International, owned by Md Nezam Uddin. Sirajuddoula is also a partner in Baraka Ship Breaking.
Three independent sources in Chattogram confirmed that these business owners have close financial ties with Showkat, from whom many have taken cash loans. None agreed to be named for security reasons.
According to the international trade watchdog Credence, all four companies under Red Ruby Group were dissolved in 2015. Yet in that very year, Showkat’s SN Corporation imported a large scrap vessel through Red Ruby Group –at a price significantly higher than the market rate.
The French research group Robin des Bois reported in its Shipbreaking Bulletin that SN Corporation bought the Hong Kong-flagged vessel at $425 per tonne. At the same time, Intermodal’s weekly market report listed prevailing prices between $230 and $405 per tonne.
The calculation suggests SN Corporation paid $360,000 above the market value for that single ship.
After Red Ruby was dissolved, another company – Talent Mile Ltd – was incorporated at the same address through Vistra (BVI) Ltd.
Using this entity, SN Corporation opened a letter of credit at Standard Chartered Bank in 2020 for the import of another vessel. But no trace of this ship exists in either official or international records.
Documents from Credence and TrustedDocks indicate that Talent Mile was shut down after the payment was made in 2020.
Repeated phone calls and text messages to Standard Chartered Bank Bangladesh CEO Naser Ezaz Bijoy seeking comments over not doing due diligence in opening the LC went unanswered till this report was filed.
Evidence suggests that Talent Mile’s transactions were suspicious in nature.
Reports by Credence and Volza show since its inception until December 2020, Talent Mile handled 54 shipments involving only four parties to Bangladesh. The companies are Chattogram-based SN Corporation, NB Steel, SH Enterprises, and Seashore International Ltd.
The incomplete BFIU report also stated that Talent Mile used the same email address as Red Ruby Group, proving a common beneficial interest.
TIMES found that both Red Ruby and Talent Mile registered their filings using a Singapore-based domain, hinting at Singapore’s role as an intermediary hub in the laundering chain. This news outlet has already traced Showkat’s illegal properties in Singapore.
Talent Mile was formed to replace Red Ruby and both were linked to Columbia Seas, and all three were registered through Vistra (BVI) Ltd. Various records show these entities were primarily used to handle SN Corporation’s transactions.
After Talent Mile was dissolved, the syndicate once again started transactions with Columbia Seas and siphon money.
According to Credence and Volza data, since its incorporation in 2008, Columbia Seas has conducted all its import-export dealings with companies belonging to the same Bangladeshi syndicate. The same group of owners exported to and imported from one another through Columbia Seas.
A senior financial intelligence official told TIMES, “These transactions appear entirely artificial – money was laundered under the guise of inter-company trade.”
Documents show over the past 17 years, Columbia Seas imported goods only from three firms – SN Corporation, Sagorika Ship Breaking Industry, and Baraka Ship Breaking – while exporting to five others: KR Ship Recycling Yard, Bob Recyclers, NB Steel, Mahinur Ship Recycling Ltd, and Taihua Steel Enterprise.
Interestingly, SN Corporation always imported scrap vessels from Red Ruby and Talent Mile, but never from Columbia Seas. Instead, it exported to Columbia Seas. At the same time, the five firms imported ships from Columbia Seas, clearly indicating that the syndicate created circular trade flows to disguise the illicit transfer of funds.
The purpose of these transactions was not commerce but to conceal the trail of laundered money, according to officials of the financial intelligence unit.
Investigation also found one syndicate member, Taihua Steel Enterprise, opened a business office in London on 13 June 2022, which BFIU investigators believe, another step to expand Showkat’s offshore network.
“This multilayered offshore structure has evolved into one of the largest money-laundering operations in Bangladesh’s history,” believe one of the officials.
Global investigative bodies such as the OCCRP and ICIJ also documented similar complex, shipping-based laundering schemes.
TIMES of Bangladesh tried to contact Showkat Ali Chowdhury multiple times via phone and text between 15 October and 10 November to seek his comment. He did not respond.
