Connect with us
Click me!

Business

BB won’t quit on RCBC

AJ Bajo

Published

on

Bangladesh Bank (BB), the central bank of Bangladesh, has filed a new complaint against Yuchengco-led Rizal Commercial Banking Corp. (RCBC) and other parties with a US court in a bid to secure compensation for damages pertaining to the $81-million cyber heist in 2016.

“Based on a report from its counsel, Bangladesh Bank filed a complaint against RCBC, its officers and other parties before the Supreme Court of the State of New York County of New York on 27 May 2020 (NY time),” RCBC told the Philippine Stock Exchange.

“In the complaint, Bangladesh Bank is seeking compensation for damages relating to the incident in 2016 where $81 million was allegedly stolen from the account of Bangladesh Bank through conspiracy perpetrated by all the defendants,” it added.

Dismissal from NY court

The new complaint came after the Federal Court of New York, in 20 March 2020, dismissed a previous civil case by Bangladesh Bank against the same defendants relating to the same cyber heist.

The case was dismissed for failure to state a federal racketeering claim. Bangladesh Bank is currently appealing the decision before the US Circuit Court, RCBC said.

The case stems from the 2016 heist wherein hackers broke into Bangladesh Bank’s systems and sent multiple remittance orders to their account with the Federal Bank of New York.

Some remittance orders were allowed to be transacted through four correspondent banks in New York, then were remitted to alleged fictitious accounts with RCBC. After being withdrawn from RCBC, part of the money were laundered through Philippine casinos.

Click to comment