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| RCBC Jupiter st. Branch, Makati City |
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) ordered Rizal Commercial Banking Corporation (RCBC) to pay Php 1 billion as fine for the US$81 million hacked from the Central Bank of Bangladesh. The fine is a highest on record in the Philippines.
This was meant to affirm the BSP’s commitment in ensuring the stability of the country’s banking system via strong and effective regulation.
"The BSP recognizes RCBC’s efforts in instituting changes to strengthen its anti-money laundering and counter-terrorist financing risk management system and governance culture," the BSP said.
The fine will be paid in two equal tranches within 1 year according to RCBC.
The reason was due to RCBC’s branch in Jupiter st. in Makati City was the recipient of US81 million that was transmitted by still unidentified hackers from the Central Bank of Bangladesh’s account at the New York Federal Reserve last February, 2016. RCBC then converted the amount into pesos that was then funnelled into casinos wherein it was laundered. Only US$18 million were recovered.
Most of the money was converted into pesos before it ended up in casinos, where the trail went cold with only $18 million recovered by Philippine authorities.
According to Bangladeshi Ambassador John Gomes, RCBC was liable for the disappearance of the money wherein the results of the Senate investigation, RCBC failed to stop the release of the money despite receiving warnings from the New York Federal Reserve.
“If they put the red flag on, then nothing of all this would have happened. I still believe RCBC has to answer,” Ambassador Gomes said.
“The resignation of the RCBC president, the resignation of the chief of the treasury [of RCBC], obviously these are indicating that they are definitely responsible,” Gomes added.
Ajmalul Hossain, lawyer of the Central Bank of Bangladesh said he would not sue RCBC but would press for the return of their money.
“There may not be a need to do that (filing a suit against RCBC). We know the challenges that they face. We know their weaknesses. We know what (the) red flags were. Bangko Sentral knows, AMLC knows, everyone knows. They will have to face those challenges later on,” Hossain disclosed.
RCBC shares opened down by 1.7 pct points at the bourse by morning of August 8, 2016.
Source: Readings from http://news.abs-cbn.com/business/08/05/16/rcbc-fined-record-p1-b-over-bangladesh-cyber-heist
This was meant to affirm the BSP’s commitment in ensuring the stability of the country’s banking system via strong and effective regulation.
"The BSP recognizes RCBC’s efforts in instituting changes to strengthen its anti-money laundering and counter-terrorist financing risk management system and governance culture," the BSP said.
The fine will be paid in two equal tranches within 1 year according to RCBC.
The reason was due to RCBC’s branch in Jupiter st. in Makati City was the recipient of US81 million that was transmitted by still unidentified hackers from the Central Bank of Bangladesh’s account at the New York Federal Reserve last February, 2016. RCBC then converted the amount into pesos that was then funnelled into casinos wherein it was laundered. Only US$18 million were recovered.
Most of the money was converted into pesos before it ended up in casinos, where the trail went cold with only $18 million recovered by Philippine authorities.
According to Bangladeshi Ambassador John Gomes, RCBC was liable for the disappearance of the money wherein the results of the Senate investigation, RCBC failed to stop the release of the money despite receiving warnings from the New York Federal Reserve.
“If they put the red flag on, then nothing of all this would have happened. I still believe RCBC has to answer,” Ambassador Gomes said.
“The resignation of the RCBC president, the resignation of the chief of the treasury [of RCBC], obviously these are indicating that they are definitely responsible,” Gomes added.
Ajmalul Hossain, lawyer of the Central Bank of Bangladesh said he would not sue RCBC but would press for the return of their money.
“There may not be a need to do that (filing a suit against RCBC). We know the challenges that they face. We know their weaknesses. We know what (the) red flags were. Bangko Sentral knows, AMLC knows, everyone knows. They will have to face those challenges later on,” Hossain disclosed.
RCBC shares opened down by 1.7 pct points at the bourse by morning of August 8, 2016.
Source: Readings from http://news.abs-cbn.com/business/08/05/16/rcbc-fined-record-p1-b-over-bangladesh-cyber-heist
