Bangladesh backtracks considering insufficient evidences

Monirul Alam of DOT
Bangladesh officials appeared to have backtracked this week from filing a case to claim damage of reserve heist against US Federal Reserve Bank of New York (US Fed) considering insufficient evidences. The case has to be lodged with ‘Inform Commercial Court’ under local laws in the USA. As per the law, Petitioner may face sanctions on the grounds of insufficient evidences leading to lose the case.
On the other hand, sources said, the central bank of Bangladesh could not proof that it was innocent in the event of the highest reserve heist in the world’s banking history and had no negligence in duty.
On this backdrop, the Bangladesh delegation, led by Secretary of Financial Institution Division Ashadul Islam, left USA on Monday after a weeklong consultancy with law firms appointed by Bangladesh Bank (BB) over finding prospects of winning once the lawsuit is filed. The law firms sought sufficient evidences to stand for claiming damage.
“We didn’t give up. The process (of filing case) is still going on. Two law firms have been appointed to work on it. We are not disclosing law firms’ names right now. The question is whether we have enough evidences which would lead us to win the case,” said an official on condition of anonymity.
BB’s legal advisor Ajmalul Hossain QC and Bangladesh Financial Intelligence Unit (BFIU) top officials were also included in the delegation. Sources said Ajmalul Hossain is cooperating with the law firms and will back in country few days later.
Meanwhile, according to local laws, a petitioner shall need to file a ‘damage claiming case’ with ‘Inform Commercial Court’ within three calendar years after the incident took places. Otherwise, the court will not accept the case as valid.
As Bangladesh Bank’s reserve heist took place on February 4’ 2016, the case must be filed by February 3’ 2019. But, Bangladesh delegation visited USA early January came back without finalizing the decision to file case.
The reserve heist is being investigated locally and by law enforcement agencies in USA and Philipines following Bangladesh’s request.
Sources said the investigation will be continued until perpetrators brought to book.
Highly competent hackers breach out the SWIFT Code of Bangladesh Bank and appeared to be the host instructor and sent several payment orders to US Fed amounting to over USD 1 billion. The US Fed tried to verify orders by sending emails to Bangladesh bank and got no reply. The US Fed then stopped clearing payment orders. But, in the mean time, Bangladesh Bank lost USD 101 million from its account with the US Fed.
Of the stolen money, USD 20 million went to Sri Lanka, which was sent back to US Fed by instant interference of banking authority of the country. But, remaining USD 81 million laundered to the Philippines Casino industry through banking channel.
The Philippines authority is investigating the matter under anti-money laundering laws.
Till now, Bangladesh bank got back USD 15 million from Philippines while another USD 28 million is in the pipeline, according to sources.
The BFIU is trying to recover entire amount Bangladesh bank lost in the heist.
“It is almost impossible but we have been trying,” sources said.