Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Bangladesh asks NY Fed, Philippines to help retrieve stolen money

Published 27/03/2016, 13:16
© Reuters. Commuters pass by the front of the Bangladesh central bank building in Dhaka

By Serajul Quadir

DHAKA (Reuters) - The new governor of Bangladesh's central bank has sent formal letters to the New York Fed, as well as central bank and money laundering chiefs in the Philippines, asking them to help recover its stolen $81 million (57.32 million pound), a senior central bank official said on Sunday.

The news came as Finance Minister Abul Maal Abdul Muhith said the government was waiting to hear the recommendations of an investigation committee to decide whether the central bank should file a suit against the Fed after one of the biggest cyber heists in history.

Unknown hackers breached the computer systems of Bangladesh Bank in early February and attempted to steal $951 million from its account at the Federal Reserve Bank of New York, which it uses for international settlements.

Some attempted transfers were blocked, but $81 million was transferred to accounts in the Philippines belonging to casino operators.

The central bank official told Reuters that Fazle Kabir, who became governor a week ago, had asked the NY Fed chief and the heads of the Philippines central bank and money laundering agency to assist Bangladesh in retrieving the funds.

Kabir asked the Fed to investigate if there had been any lapses or whether it had any involvement in the heist, the official said.

Kabir sent separate letters to the ambassador of Bangladesh at the U.N. headquarters, and its permanent representative, urging them to pursue the NY Fed.

The previous central bank governor, Atiur Rahman, resigned earlier this month after details emerged in the Philippines that $30 million of the money was delivered in cash to a casino junket operator in Manila, while the rest went to two casinos.

"In his letters the new governor sought all kind of help from them to retrieve the stolen money as we are following multiple efforts for the sake of the country," the official said.

Last week Bangladesh also formally sought assistance from the U.S. Federal Bureau of Investigation to track down the cyber crooks.

Bangladesh has appointed law firms to weigh its options vis-à-vis the NY Fed.

"We will wait till the recommendations of the government- formed investigation committee," Finance Minister Abul Maal Abdul Muhith told Reuters on Sunday, referring to a three-member committee headed by Mohammad Farash Uddin, a former central bank governor.

"We will act as per its recommendations."

Earlier this month Muhith said Dhaka might resort to suing the Fed to recover the money: "The Fed must take responsibility," he said.

© Reuters. Commuters pass by the front of the Bangladesh central bank building in Dhaka

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.