Business Essentials for Professionals


A Manila Bank Would Be ‘Wiped Out’ For Heist Role, Says A Bangladesh Minister

A Manila Bank Would Be ‘Wiped Out’ For Heist Role, Says A Bangladesh Minister
A Philippines bank had been put to use for channeling about $81 million of stolen money that was taken away by hackers from the Bangladeshi central bank’s account lying with the Federal Reserve Bank of New York about two years ago. and the Bangladesh government wants to “wipe out” the Philippines bank, said Bangladesh’s finance minister. The role of the Philippine bank was discovered about a year ago.
There were reports in the media about the New York Fed being asked to join a damage seeking lawsuit against Manila-based Rizal Commercial Banking Corp (RCBC) that is being planned to be filed by Bangladesh Bank. And the country’s finance minister Abul Maal A. Muhith made the above comment while responding to a question on the media reports.
 “The Bangladesh Bank has taken a decision (on filing a suit). They will let me know. We haven’t so far taken any steps as the Philippines government was taking care of it (investigating the heist),” Muhith said.
 “But it seems Rizal bank has been playing delinquent. We want to wipe out Rizal bank from the world.”
The comments were not elaborated by Muhith.
The SWIFT payments system was hacked and fraudulent orders were placed with the U.S. Federal Reserve to transfer the huge amount in batches. The stolen money had allegedly disappeared completely in the casino industry after it had been channeled to several bank accounts held at RCBC.
While the Bangladesh bank has only been able to recover about $15 million of the stolen money - majorly from a Manila junket operator since the money was stolen about two years ago, there is also no information at all about the people who were responsible for the largest online heist in history.
The central bank of Philippines had imposed a record fine of one billion pesos ($20 million) last year of the erring Philippine bank after the allegations that the bank having failed to stop the movement of the money that was stolen form the Bangladeshi bank account was proved to be true.
RCBC has said that the Dhaka bank should be held responsible for its negligent behavior and therefore citing this reason, the Philippine bank has said that it would not pay anything in damages to the Bangladesh Bank.
There were no comments that were made on the issue by the RCBC in relation to the comments made by the Bangladesh minister.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc