Bangladesh States Philippines President Promises to Return Heist Money Funneled Through Manila, According to Reuters

By Krishna N. Das, Karen Lema, and Neil Jerome Morales

MANILA – Philippine President Rodrigo Duterte has pledged that $81 million stolen from the Bangladesh Bank’s account in New York by cyber criminals and subsequently funneled through Manila’s banks will be returned, as stated by the Bangladesh ambassador to the Philippines on Friday.

A team from Bangladesh’s central bank visiting Manila to recover the funds disclosed that they are close to reclaiming $15 million, which has been frozen by the Philippines.

In February, cyber criminals attempted to steal nearly $1 billion from the Bangladesh Bank’s account at the Federal Reserve Bank of New York, successfully transferring $81 million to four accounts at Rizal Commercial Banking Corporation in Manila. Investigators reported that the money was later laundered through casinos in the city.

So far, only about $18 million has been accounted for, including $2.7 million that the Philippines’ casino regulator has frozen.

The Philippine Department of Justice has advised the Bangladesh Bank delegation to file legal documents to assert its claim over the $15 million, while emphasizing that the casino funds need to be pursued through a different process, according to sources close to the delegation.

Ambassador John Gomes expressed optimism about recovering the entire $81 million, attributing this hope to a direct commitment from President Duterte. He also mentioned that Bangladesh’s finance minister may visit the Philippines to aid in the recovery process.

Gomes indicated that RCBC should bear responsibility, as it failed to comply with a stop-payment request from the Bangladesh Bank. Lawyer Ajmalul Hossain stated they would take legal action against RCBC if the full recovery of the funds is not achieved.

Additionally, the Philippine central bank announced on Friday it would impose a 1 billion peso ($21 million) fine on RCBC for its failures related to the heist, marking the largest penalty it has ever enforced in supervisory actions.

In a March Senate hearing, RCBC’s then-president Lorenzo Tan acknowledged that there were "some judgment errors" among ground staff. The bank claimed the transfers were based on authenticated instructions via the SWIFT payment network, facilitated by stolen Bangladesh Bank credentials.

Ricardo J. Paras III, chief state counsel of the Philippines’ Department of Justice, stated that court documents have been drafted to initiate recovery of the $15 million. However, it is crucial for Bangladesh to substantiate that it is indeed their money.

To support their claim, the Bangladeshi delegation prepared an affidavit referencing a letter from the New York Fed, confirming that the funds were stolen from the Bangladesh Bank’s account. This affidavit will be presented to the Department of Justice.

The Philippine Amusement and Gaming Corporation has pledged cooperation with Bangladesh Bank in recovering the $2.7 million it has frozen. PAGCOR President Alfredo Lim remarked that it would reflect poorly on them if the funds are not promptly returned.

Solaire Resort and Casino, operated by Bloomberry Resorts Corp, has stated that approximately $29 million of the stolen funds passed through the casino, with most transferred to accounts of two junket operators.

Bangladesh Bank is relying on internal documents from RCBC to strengthen its position that the bank’s Jupiter Street branch failed to act on suspicions raised by some officials when the initial transfers occurred on February 5 and subsequently delayed freezing the funds upon a request from its head office on February 9.

Gomes also noted that Bangladesh Bank intends to take legal action against Philrem Service Corp, a remittance company implicated in transferring some of the stolen funds. He emphasized that they must return the money or face the legal repercussions.