• Sunday, Sep 25, 2022
  • Last Update : 10:24 am

BB HEIST: RCBC refuses to compensate Bangladesh

  • Published at 07:39 pm November 29th, 2016
BB HEIST: RCBC refuses to compensate Bangladesh
Unknown cyber criminals tried to steal nearly $1bn from the Bangladesh Bank in February, one of the biggest bank frauds ever. They succeeded in transferring some $81m via an account at the New York Federal Reserve to four accounts in fake names at a branch of Rizal Commercial Banking Corp (RCBC) in Manila. Most of the money was laundered through casinos in Manila and remains missing. RCBC external counsel Thea Daep urged Bangladesh Bank to be transparent and produce the results of its own investigation to shed light on who was behind the heist, saying it was the least Bangladesh Bank could do. “RCBC is not the proximate cause of the theft. They have no case against us. BB (Bangladesh Bank) was the one who was negligent,” Daep said in a statement, adding the local lender will not pay Bangladesh Bank anything. Bangladesh Ambassador John Gomes was quoted in a newspaper as saying his government would seek compensation from RCBC. Gomes did not respond to request for comments. Daep said RCBC received the funds after they went through three layers of highly protected financial institutions. “Numerous reports quoting high Bangladeshi officials and the initial findings of BB’s own investigation indicated that the heist got help from BB insiders. Shortly after, BB decided to abort its investigation which raises a lot of questions, to say the least,” Daep said. Subhankar Saha, spokesman for Bangladesh Bank, told Reuters in Dhaka “halt payment” instructions were sent to RCBC both by Bangladesh Bank and the Federal Reserve Bank of New York but that RCBC did not comply. “The payment in cash was also abnormal,” he said. “…The mechanism of transfer of money was also not transparent. So all these are questionable.” Only about $15m has been recovered and returned to Bangladesh, with a further $2.7m frozen. A Bangladesh delegation is in Manila to meet with Philippine authorities and speed up the recovery of the rest of money. RCBC has been fined a record one billion Philippine pesos ($20 million) by the Philippine central bank, about one fifth of its net profit last year, for its failures to prevent the Bangladesh Bank money from being transferred through accounts at the bank. An anti-money laundering body last week filed charges against five officials of RCBC in connection with the heist. Meanwhile, a scheduled meeting between the President of Philippines Rodrigo Duterte and high ranking officials from Bangladesh has been cancelled, reports Inquirer.net, quoting a Filipino official. Presidential spokesperson Ernesto Abella yesterday said the meeting was cancelled due to “pressing matters that demand the president’s immediate attention.” The five-member delegation, led by Law Minister Anisul Huq, are currently visiting the archipelago to meet officials of the Philippines government to discuss the legal details concerning the retrieval of the reserve that was stolen from Bangladesh Bank in February. The delegation includes Bangladesh Bank Governor Fazle Kabir, Attorney General Mahbubey Alam, Financial Institutions Division Secretary Eunusur Rahman, and the president of standing committee on Finance Ministry, Dr Md Abdur Razzak. The central bank has already recovered $15.25m from the Philippines’ anti-money laundering council and $20m from Sri Lanka, nine months after computer hackers stole $81m from the central bank’s account.
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail