Special Correspondent :
Bangladesh Bank (BB) has finally sued a Philippine bank over its $81 million stolen reserve from the Federal Reserve Bank of New York in 2016.
“The case was filed in the Southern District Court of New York at 7:00am local time (NY time 8:00pm) on Thursday against the Manila-based Rizal Commercial Banking Corp (RCBC) against Manila-based Rizal Commercial Banking Corp (RCBC), seeking to recoup the $81 million plus damages and legal costs,” Abu Hena Mohd. Razee Hassan, head of the Bangladesh Financial Intelligence Unit (BFIU) told The New Nation on Friday.
In the complaint, Bangladesh Bank also accused dozens others, including several top RCBC executives, of involvement in a “massive” and “intricately planned” multi-year conspiracy to steal its money.
“A US law firm filed the case with the New York court on BB’s behalf through online and it has been accepted,” said Razee Hassan.
Earlier, on Sunday a BB team left Dhaka for the USA to file the lawsuit.
According to the case document, hackers from North Korea used fraudulent orders on the SWIFT payments system to steal the money. The money was sent to accounts at the RCBC and then vanished into the casino industry in the Philippines. But the funds’ ultimate destination remains unclear.
The complaint accuses the Philippine bank of following fraudulent procedures at every step.
On February 4, 2016, the hackers broken into Bangladesh Bank’s system and created 70 orders to the Federal Reserve Bank amounting to $1.94 billion. Of that amount, $101 million was released.
The hackers sent $81 million to the RCBC’s branch in Manila and the rest, $20 million went to Sri Lanka, which has returned the money to Bangladesh.
The Philippines later returned $14.54 million but the rest is yet to be retrieved.
“RCBC and its senior personnel had full authority and control over these accounts, and all of the RCBC personnel who touched them, from the opening of the fictitious accounts, to terminating the short-lived hold, to allowing the numerous transactions to continue despite their knowledge or reckless disregard of the nature of the stolen funds,” Bangladesh Bank said in the case statement.
Meanwhile, RCBC issued a statement yesterday saying it was aware of the case and had hired a prestigious law firm, Quinn Emanuel to lead its defense.
Bangladesh Bank (BB) has finally sued a Philippine bank over its $81 million stolen reserve from the Federal Reserve Bank of New York in 2016.
“The case was filed in the Southern District Court of New York at 7:00am local time (NY time 8:00pm) on Thursday against the Manila-based Rizal Commercial Banking Corp (RCBC) against Manila-based Rizal Commercial Banking Corp (RCBC), seeking to recoup the $81 million plus damages and legal costs,” Abu Hena Mohd. Razee Hassan, head of the Bangladesh Financial Intelligence Unit (BFIU) told The New Nation on Friday.
In the complaint, Bangladesh Bank also accused dozens others, including several top RCBC executives, of involvement in a “massive” and “intricately planned” multi-year conspiracy to steal its money.
“A US law firm filed the case with the New York court on BB’s behalf through online and it has been accepted,” said Razee Hassan.
Earlier, on Sunday a BB team left Dhaka for the USA to file the lawsuit.
According to the case document, hackers from North Korea used fraudulent orders on the SWIFT payments system to steal the money. The money was sent to accounts at the RCBC and then vanished into the casino industry in the Philippines. But the funds’ ultimate destination remains unclear.
The complaint accuses the Philippine bank of following fraudulent procedures at every step.
On February 4, 2016, the hackers broken into Bangladesh Bank’s system and created 70 orders to the Federal Reserve Bank amounting to $1.94 billion. Of that amount, $101 million was released.
The hackers sent $81 million to the RCBC’s branch in Manila and the rest, $20 million went to Sri Lanka, which has returned the money to Bangladesh.
The Philippines later returned $14.54 million but the rest is yet to be retrieved.
“RCBC and its senior personnel had full authority and control over these accounts, and all of the RCBC personnel who touched them, from the opening of the fictitious accounts, to terminating the short-lived hold, to allowing the numerous transactions to continue despite their knowledge or reckless disregard of the nature of the stolen funds,” Bangladesh Bank said in the case statement.
Meanwhile, RCBC issued a statement yesterday saying it was aware of the case and had hired a prestigious law firm, Quinn Emanuel to lead its defense.
