Staff Reporter:

Allegations of abusing power and siphoning huge amount of money abroad have been raised against M Kamal Hossain, former Managing Director (MD) of Southeast Bank.

He also amassed huge amount of assets through illegal means by running a powerful Hundi network, while serving at the top of the bank, sources said.

Kamal carried out the illegal activities using two ‘business’ institutions as a weapon. This information has emerged in a sensational report by the Bangladesh Financial Intelligence Unit (BFIU).

The report said that, Kamal has amassed vast wealth in the name of himself and his family members at home and abroad through illegal Hundi activities, corruption and loan fraud.

He provided false information about the source of income, while opening accounts in banks and stock market, which is termed as a serious crime under the Prevention of Money Laundering Act.

HOW THE HUNDI NETWORK WORKED:

According to the BFIU report and internal bank sources, Kamal had strong connections with the international Hundi network. Customers would approach him when they needed to send money outside the country or bring money from abroad outside the banking channel. He would receive a fixed commission for this crime.

However, as the direct transactions of large amount of money were risky, he used bank accounts of two institutions—AB Electronics and Anira International. As these accounts were business accounts, even large transactions in these accounts would not easily come under suspicion, the report revealed.

Anira International: This account was opened at the bank’s Bangla Motor branch, just two months after Kamal Hossain became MD in March 2017. Surprisingly, there have been no transactions in this account since Kamal Hossain’s tenure ended on December 31, 2022.

The BFIU report revealed that, the institution owner Md. Ashraf Uddin and Kamal Hossain used to live at the same building in Paribagh.

AB Electronics: A former officer of the bank’s principal branch told the investigation team that Kamal Hossain, who was the then Managing Director (MD) used the accounts of that institution to conduct Hundi activities across the country.

During a spot visit to the AB Electronics at the capital’s Stadium Market, this correspondent found that, AB Electronics is a small servicing center, through which it is obviously impossible to transact such a large amount of money.

KAMAL HOSSAIN’S ASSETS:

The BFIU investigation has found that Kamal Hossain possesses assets worth around Tk 100 crore. He has five flats of 15,098 square feet in Paribagh and Eskaton. He has three plots of 19 kathas in ‘I’ and ‘J’ blocks of Bashundhara residential area and two other commercial plots in ‘I’ block.

According to the annual report of Southeast Bank, Kamal Hossain received a total of Tk 62.61 crore as MD, including salary, allowances and other benefits. In his tax return in 2022, he mentioned a net asset of Tk 29.9 crore.

The BFIU has found information about savings of Tk 85.5 crore in the name of Kamal Hossain. Of this, Tk 52.8 crore is invested in treasury bonds, Tk 22.2 crore in the stock market and Tk 50 lakh in savings certificates.

Some Tk 126.36 crore has been deposited in 43 bank accounts in his name over the years. Most of the money has been withdrawn at different times. Now there is only Tk 75 lakh.

Kamal Hossain’s first wife Monowara Begum has deposited Tk 2.73 crore in seven bank accounts. After withdrawing at various times, she now has Tk 71.31 lakh in her account.

Monowara Begum has Tk1.89 crore in the stock market and Tk 45 lakh in savings certificates.

Second wife Sabiha Akhter had Tk 41.13 crore in her account at various times. After withdrawing most of the money, now she has Tk 70.86 lakh in her account. She has Tk 2.3 crore in the stock market, Tk 3.3 in treasury bonds and Tk 45 lakh in savings certificates.

Among the three children of the first wife, Safayet Hossain has 192 accounts in different banks. In these accounts, Tk 53.8 crore was deposited in a few years. After withdrawing most of the money, now he has Tk 1.2 crore. He has Tk 5.45 crore in the stock market, Tk 3.28 crore in treasury bonds and Tk 4.8 lakh in savings certificates. Safayet Hossain also works at the same Southeast Bank.

Another son, Rubayet Hossain, 30, recently took a job in a mobile phone operator company. Tk 35.68 crore was deposited in 21 accounts in his name at different times. Now he has Tk 7.45 lakh in deposits. He has Tk 2.13 crore in the stock market and Tk 50 lakh in savings certificates.

Daughter Sanjana Kamal has just passed out from a private medical college. Tk 20.98 crore was deposited in 10 accounts in his name at different times. Now the balance is Tk 5.85 lakh. Apart from this, he has investments of Tk 1.14 crore in the stock market and Tk 1.3 crore in treasury bonds.

BID TO EVADE THE COMMENTS BY THE ACCUSED:

Attempts were made to contact Kamal Hossain, Abu Bakkar Siddique, owner of AB Electronics and Ashraf Uddin, owner of Anira International in many ways, but they could not be reached.

This report by the BFIU paints a horrifying picture of irregularities and corruption in the country’s banking sector, where top officials themselves are involved in serious crimes like money laundering.

The concerned people say that unless this incident is thoroughly investigated and exemplary punishment of those involved is ensured, it will be difficult to restore people’s trust in the financial sector.