- Unidentified hackers stole $81 million from Bangladesh Bank’s account.
- The funds were transferred to RCBC accounts.
- RCBC and a number of other individuals have been charged.
An unsolved $81 million cybercrime that involved a Philippine bank has been the subject of an appeal from the New York Supreme Court, which denied the bank’s request to have the Bangladesh central bank’s case against it dismissed.
In February 2016, unidentified hackers stole $81 million from Bangladesh Bank’s account at the Federal Reserve Bank of New York by placing false orders on the SWIFT payments system. The funds were transferred to Rizal Commercial Banking Corp (RCBC) (RCB.PS) accounts before disappearing into the Philippine gambling market.
RCBC and a number of other individuals, including senior officials, have been charged by Bangladesh Bank with plotting to steal the company’s funds. The charges are refuted by the Rizal bank of Manila.
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Contrary to Rizal Bank’s claim, the New York Supreme Court declared on January 13 that it does have jurisdiction over the issue and dismissed Rizal Bank’s suit against Bangladesh Bank.
In the same decision, the court mandated that mediation be started by the RCRC and the central bank of Bangladesh.
The Rizal bank announced that it would appeal the decision and continue to pursue the matter.
“The decision and order merely resolved the jurisidictional issues and is not in any way a finding of liability on the part of RCBC, or any of the individual defendants,” it said in a stock exchange disclosure.
The court decision has been welcomed by Bangladesh Bank, which stated in a statement this week that it opens the door for the case to move forward in New York court if necessary.
According to the Bangladesh central bank, RCBC should now come forward for mediation or get ready for a protracted legal struggle, according to a banking sector insider in Dhaka who declined to be identified because he was not authorised to speak to the media.
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