To stop money laundering and tax evasion investigations against him, controversial businessman Md Showkat Ali Chowdhury orchestrated the “removal” of the very chief of the agency leading the probe.
A TIMES of Bangladesh investigation has found that after repeatedly failing to halt the inquiry through other means, Showkat Ali and his associates resorted to ensnaring the Bangladesh Financial Intelligence Unit (BFIU) chief in a “honey trap”, ultimately succeeding in forcing him out.
Just 49 days after opening a formal investigation into the shipbreaking industry businessman, BFIU Chief AFM Shahinul Islam was removed from his position – effectively burying the extensive financial scandal report. The chief was not the only one ousted; the entire investigation team was dissolved.
After launching the investigation on 30 June this year, the BFIU ordered all banks to freeze the accounts of Showkat Ali, his family members and all entities linked to him. Banks were also directed to submit updated statements and full transaction histories of those accounts within five working days.
The intelligence team began examining the documents on 8 July. By the first week of August, investigators had prepared a draft intelligence report. It was at this stage that pressure began mounting from multiple quarters.
Several members of the inquiry team confirmed to TIMES that they were subjected to intense pressure but said they continued their work despite it.
According to the draft report, accounts held by Showkat Ali and by individuals and entities linked to him across multiple banks and financial institutions recorded transactions amounting to Tk16,655 crore.
Among these, the report shows that Tk1,032 crore was transacted through Showkat’s personal savings accounts at Dhaka Bank and City Bank, funds he reportedly used for business purposes.
The report suggests that these transactions were used to evade tax.
“The process of gathering information on the foreign assets and investments of the individuals concerned is still underway,” the draft notes.
As the investigation continued, a controversial video involving Shahinul Islam appeared on social media on 17 August. TIMES has found that Shahinul had fallen into a “honey trap” set by Showkat. The scandal ultimately cost him his job.
A day after the video-call controversy, on 18 August, Bangladesh Bank Governor Ahsan H Mansur verbally placed the BFIU chief on “mandatory leave”.
According to officials familiar with the matter, the Bangladesh Bank governor had no legal authority to place the BFIU chief on leave, as the unit functions as an independent intelligence agency. All decisions — from the appointment of its chief to administrative action — rest solely with the Financial Institutions Division of the Ministry of Finance.
Shahinul told TIMES that he met the governor after the video began circulating and sought “assistance”, alleging that Showkat Ali had spread a “fabricated” video to derail the investigation.
However, a forensic examination by the Criminal Investigation Department (CID) confirmed the footage was authentic.
Soon after Shahinul was placed on leave, the BFIU investigation into Showkat was abandoned, and the officers working on the case were transferred to other duties. TIMES has obtained a copy of the preliminary draft report prepared before the probe was halted.
When contacted, BFIU Deputy Head Md Mofizur Rahman Khan Chowdhury declined to comment. “As the acting head of an intelligence agency, I am not permitted to speak to the media,” he told TIMES.
After Shahinul was placed on leave, the BFIU — “on the governor’s instruction” — initiated an internal investigation against its own chief. The agency examined all bank accounts belonging to Shahinul and his family since his appointment. It found deposits of Tk23 lakh in his account and Tk20 lakh in two instalments in his wife’s account. The BFIU presented these findings to the governor.
Several officials told TIMES that this was not the first time the governor had interfered in the affairs of the financial intelligence agency. On 6 April this year, the governor’s office issued a letter instructing the BFIU to submit monthly reports of all its activities to his office.
“The governor has directed that BFIU’s activities be reported to him every month,” the letter stated.
Officials say that as the BFIU is a fully independent agency, the governor has no legal scope to demand such reports.
Several senior officials at the Bangladesh Bank headquarters told this reporter that they had noticed a growing distance between the governor and Shahinul Islam shortly after his appointment, although they did not know the reason behind it.
TIMES tried to contact the central bank governor for a comment, but he could not be reached.
In the midst of the controversy surrounding the BFIU chief’s video, Eastern Bank — whose chairman is Showkat Ali — forwarded transaction details of one of Shahinul’s accounts to the tax intelligence wing of the National Board of Revenue (NBR).
According to the report, Shahinul had used a student file at Eastern Bank to send about Tk1.11 crore to his daughter in Canada.
Despite the disclosure, Bangladesh Bank raised no concerns regarding the source of the funds. At the time, the central bank’s spokesperson Arief Hossain Khan told the media that it was “not unusual” for a retired official to possess that amount of money, and that money sent through formal banking channels could not be described as money laundering. He added that if any inconsistency was found with declared income, it was the National Board of Revenue’s responsibility to examine it.
Meanwhile, TIMES has uncovered additional evidence of Showkat’s tax evasion. In 2016, he imported a brand-new luxury Mercedes-Benz G63 SUV, illegally claiming duty-free privileges during the import process. The vehicle was later seized by customs authorities on 23 March 2022.
Although he declared an import value of Tk1.41 crore, the car’s actual market price in Bangladesh — including duties and taxes — exceeded Tk10 crore at the time.
TIMES attempted to reach Showkat Ali between 15 October and 10 November through phone calls and text messages for his comments on all allegations against him, but he did not respond.
