SECOND EDITION
FRIDAY, MARCH 11, 2016 | Falgun 28, 1422, Jamadiul Awal 30, 1437 | Regd No DA 6238, Vol 3, No 325 | www.dhakatribune.com | 32 pages plus 24-page Weekend supplement | Price: Tk10
Anatomy of a bank robbery n Tribune Desk Those suspected perpetrators of the $100 million heist of Bangladesh Bank funds deposited at the Federal Reserve Bank of New York (New York Fed) in February opened dollar-denominated accounts in May last year. And then they sat and waited. For what? A long weekend. On May 15, 2015, Enrico Teodoro Vasquez, Alfred Santos Vergara, Michael Francisco Cruz and Jessie Christopher Lagrosas opened US dollar bank accounts at Rizal Commercial Banking Corporation
FALSE TRANSFER ORDERS TO THE PHILIPPINES ●
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and Monday, February 8, fell on Chinese New Year, a non-working holiday in the Philippines. It mostly went according to plan. The perpetrators of the robbery certainly “had deep knowledge of [Bangladesh Bank’s] internal workings, likely gained by spying on bank workers,” Reuters quoted security experts as saying. They managed to steal payment transfer credentials which were used to order transfers out of a New York Fed account held by Bangladesh Bank, Reuters reports.
The heist
$6m
25
$ m to Vasquez supposedly on behalf of Kanchpur, Meghna and Gumti 2nd Bridges Construction project
$19m
$30m
$25m
30
$ m to Lagrosas supposedly on behalf of Dhaka Mass Rapid Trans Dev project
6 $19m to Vergara supposedly from Bheramara Combined Cycle $ m to Cruz supposedly on behalf of IPFF project cell
Approximates. Source: inquirer.net
Power Plant Development Project
INSIDE
(RCBC), a Philippine bank. The accounts remained untouched until February 4, 2016, the Philippine Daily Inquirer (PDI) reports. The fraudulent transfer orders were timed for February 4 this year, a Thursday, so that the next day Bangladesh Bank would be closed for the weekend. Saturday is a common weekend for Bangladesh and the Philippines, Sunday is a weekend there
On February 4, a Thursday, $81m from the account of Bangladesh Bank at the New York Fed was ordered to be transferred to the four RCBC accounts – $30m was transferred to Lagrosas, $19.99m to Vergara, $25m to Vasquez and $6m to Cruz. The funds were credited to the accounts via straight-through process after the transactions passed internal validation criteria. The funds were cleared through US-
First DTH satellite TV starts Apr 14
March to stop Rampal plant begins
Beximco Communications Limited is going to launch country’s first DTH service on the Bengali New Year. PAGE 3
Several green groups started their fourday mass procession towards Rampal plant yesterday demanding that it should be scrapped immediately. PAGE 32
based correspondent banks Citibank, The Bank of New York Mellon and Wells Fargo. The same day, Lagrosas withdrew $22.73m and deposited it in the US dollar account of William Go DBA Centurytex Trading, an account which was opened that day, PDI reports. Between February 5 and 13, remittance company Philrem remitted the funds, now converted into Philippine pesos, to the bank accounts of Chinese national Weikang Xu, Eastern Hawaii Leisure Co and Bloomberry Hotels Inc (Solaire Resorts). By the time Dhaka sent off frantic messages to halt the transaction, there was nobody in the office in Manila to respond. On February 9, RCBC received a Swift message from BB requesting payment to be stopped and the accounts to be frozen for investigation. But withdrawals from the accounts totalling $58.15m had already been processed by RCBC. Some $15.2m was deposited in the account of Philrem, $42.93m in Go’s dollar account and another $20m in Philrem, PDI reports. On February 16, BB Governor Atiur Rahman sought the assistance of Philippine counterpart, Governor Amando Tetangco Jr of Bangko Sentral ng Pilipinas, PDI reports. Three days later, the Philippines’ Anti-Money Laundering Council (AMLC) began a probe of bank accounts relating to Weikang Xu (believed to be a junket operator), Eastern Hawaii Leisure Co and Solaire Resorts. The Philippine Daily Inquirer broke the story of a possible $100m digital bank robbery of BB funds on February 29. The next day, the Court of Appeals in the Philippines, acting on an urgent petition from the AMLC, ordered four Philippine banks PAGE 2 COLUMN 1
1st Round
Sport Page-28
BB HEIST TIMELINE
May 15, 2015 Five Philippine nationals open US dollar accounts at RCBC bank in the Philippines
February 4, 2016 $81m from BB account at New York Fed transferred to the four RCBC accounts
February 5 to 13 Remittance company Philrem remits the funds that are converted into Philippine pesos to the bank accounts of a Chinese national
February 8 BB requests RCBC to stop payment and refund the funds. But, this is a non-working holiday in the Philippines.
February 9 RCBC receives a Swift message from BB requesting payment to be stopped. But withdrawals totalling $58.15 million have already been processed.
February 16 BB governor seeks the assistance of Philippine counterpart regarding the loss of $81m
February 29 The Philippine Daily Inquirer (PDI) reports Philippine financial regulators investigating estimated $100m bank heist
February 19 Philippines' Anti-Money Laundering Council (AMLC) begins probe of related bank accounts
March 1 Philippine Court of Appeals orders four Philippine banks – RCBC, East West Bank, Banco de Oro and Philippine National Bank – to freeze suspected accounts for six months
March 7 BB says Financial Intelligence Unit working with the AMLC to retrieve the money. New York Fed denies its systems were breached
March 8 Finance Minister AMA Muhith says government will file a case against the US Federal Reserve
March 9 It is reported that an attempted theft of $870m of BB funds was foiled. BB executive director says $20m retrieved
March 10 The AMLC announces probe into six people. Philippine Senate public hearing scheduled for March 14
Sources: dhakatribune.com, inquirer.net, rappler.com