A Dhaka court has ordered the Criminal Investigation Department (CID) to submit their investigative report on the Bangladesh Bank cyber theft incident by the 2nd of July. The order was given by Dhaka’s Additional Chief Metropolitan Magistrate, Wahiduzzaman, after the assigned investigation officer failed to deliver the report on the set date. As a result, CID has been granted 85 separate opportunities to finalize its inquiry into this high-profile case. This case revolves around the shocking theft of $101 million from the Bangladesh Bank’s account which was held at the Federal Reserve Bank of New York. The heinous act took place in February 2016.
The majority of the stolen funds, specifically $81 million, were directed towards accounts associated with the Rizal Commercial Banking Corp (RCBC), a banking institution based in Manila. From there, the money mysteriously vanished, having been absorbed into the casino gambling scene in the Philippines. The legal complaint attached to this situation was filed by the Deputy Director (Accounts and Budgeting) of the Bangladesh Bank at Motijheel Police Station on the 15th of March 2016.
Throughout the ongoing investigation and legal proceedings, Bangladesh has managed to reclaim $15 million from RCBC. An additional $20 million, which had been redirected to a financial institution in Sri Lanka, was also successfully retrieved. Despite these successes, a significant amount of the funds originally stolen from Bangladesh Bank remain unaccounted for.
In early February 2022, Bangladesh Bank decided to take further legal actions against Rizal Bank in a United States courtroom to recoup the remaining $66 million in stolen funds. The bank hoped that this international course of action would bring about the necessary pressure and traction needed to recover the substantial amount of money lost in the cyber crime incident.
As the case progressed, on the 2nd of March 2023, the New York Supreme Court consented to allow Bangladesh Bank’s lawsuit over the $81 million cyber theft to move forward. However, in this instance, several charges against RCBC were dropped from the proceedings—a decision that undoubtedly had an impact on the direction and progression of the case.
During the same court session, the Appellate Division of the New York Supreme Court made the decision to dismiss three specific accusations—conversion, aiding and abetting conversion, and conspiracy to commit conversion. These charges were initially levied against RCBC and several of its defendants. However, due to the ruling, these three causes of action were no longer part of the legal case lodged by Bangladesh Bank.
Moreover, the case was also dismissed against four individual defendants connected with RCBC. This ruling was based on the grounds of ‘lack of personal jurisdiction’, which indicates that the court did not hold the right to exercise its authority over these individuals. The proceedings of the case continue to be complex, involving many legal intricacies.
Throughout this entire ordeal, the Bangladesh Bank has relentlessly pursued justice and the retrieval of its funds. The cyber heist has been a lingering black mark on the Bank’s history, and it seeks to bring an end to this chapter through all legal means possible.
The theft has also brought international attention to the vulnerability of banking institutions towards high-tech cyber crimes. Even the most secure institutions are not immune, as evidenced by Bangladesh Bank’s account at the highly esteemed Federal Reserve Bank of New York being the target of this crime.
The case has become a significant symbol for data security in the global financial sector. The ongoing investigation and the legal steps taken by Bangladesh Bank provide crucial lessons for banks worldwide on how to handle such situations, highlighting the importance of stringent security measures.
The funds’ movement, from the Federal Reserve across the sea to Manila and Sri Lanka, further illuminates the intricate nature of cyber crimes, as the digital nature of these modern crimes allows for quick, worldwide theft. Cyber security has become as important as physical safety measures for banks.
This heist also underscores the global reach of cyber theft crimes. With the stolen money being traced back to Manila-based RCBC and its subsequent disappearance into the Philippines’ casinos, the ramification of these crimes knows no geographical bounds.
In the world of global finance, the security protocols of one bank affect the security of the global banking landscape. Therefore, the battle Bangladesh Bank fights represents a larger cause, advocating for the strengthening of cyber security measures in financial institutions everywhere.
The ongoing court case signifies not just a cyber theft incident, but a scenario of global concern. With banks worldwide watching closely, the outcome is sure to lead to significant revisions of banking security measures, globally, to prevent similar incidents in the future.
The post Bangladesh Bank Pursues Justice in $101 Million Cyber Heist appeared first on Real News Now.
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