Central bank of Bangladesh

2016

Consultations with lawyers about the claim against U.S. Fed

On March 22, 2016 it became known that the Bangladesh Bank conducts consultations with lawyers in an occasion of the beginning of judicial investigation concerning Federal Reserve Bank of New York which allowed theft of funds from the account of the Bangladesh Central Bank in FRS.

Reported about it a number of media with reference to the report of Bangladesh Bank devoted to theft of funds from the account in the U.S. Federal Reserve.

In particular, in Reuters said that the Central bank of Bangladesh employed the lawyer for drawing up the claim against FRS.

The Bloomberg agency also referred to the report of March 13, 2016 in which the Bangladesh Bank accuses FRB of New York of connivance to criminals.

In the report it is noted that in the Bangladesh Central Bank "consider the event severe violation in security from FRB of New York" and in connection therewith the Central Bank "prepares documents for presentation of the legal claim concerning FRB of New York in connection with loss of means".

Earlier in March messages about plans of the Ministry of Finance of Bangladesh about submissions of the claim concerning U.S. Fed also got to media.

The head of the Central Bank Atiur Rahman is forced to resign

In March, 2016 it became known that the head of the Central Bank of Bangladesh Atiur Rahman resigned after cyber attack to financial institution. According to the updated data in February, 2016 criminals cracked the electronic system of the Central Bank and stole $81 million from its accounts, reported Reuters.

The head of the Central Bank of Bangladesh Atiur Rahman resigned

Atiur Rahman underwent severe criticism of the authorities after it became known that he did not announce the government loss of money.

The Minister of Finance of Bangladesh Abul Maal Abdul Mukhit said that he learned about cyber attack to the Central Bank from newspapers a month later after the incident.

As reported the management of the Bangladesh Central Bank, the money transferred to Sri Lanka it was succeeded to return, and negotiations with the authorities of Philippines concerning return of the main part of the stolen means are now conducted.

Plunder of $81 million from the account of the Central Bank of Bangladesh in U.S. Fed

In March, 2016 it became known of cracking of the IT system of Federal Reserve Bank of New York (FRB; it is included into the U.S. Federal Reserve). It was originally reported that criminals could steal about $100 million belonging to the Central Bank (CB) of Bangladesh. The last also told about theft, The New York Post reports.^[1]

The Bangladesh Central Bank said that  unknown hackers got  the access to account  then they made the order about  withdrawal of funds which part  was detected later on accounts of three Philippine casinos.

Hackers stole $100 million from accounts of Bangladesh in U.S. Fed

The management of Federal Reserve Bank of New York denied information on cracking. As the press secretary of bank Andrea Priest said, there are no proofs of cracking of internal systems of the Federal reserve of the USA and implementation of the not authenticated transactions connected with the account of the government of Bangladesh.

FRB of New York noted that the order about money transfer was confirmed with the SWIFT system according to standard protocols. SWIFT emphasized that did not detect any signs of vulnerability of the system.

By the beginning of March, 2016 the total amount of the international reserves of Bangladesh was about $28 billion. Means about 250 foreign Central Banks, governments and other public institutions are stored in Federal Reserve Bank of New York.

As specified Reuters agency with reference to official representatives of the Bangladesh Central Bank, the system of this organization, but not FRS then hackers sent in Federal Reserve Bank about 30 translation requests of money for accounts of the different organizations on Philippines and Sri Lanka was cracked. Four of them were successful: swindlers managed to catch $81 million that became one of  the largest known bank swindles, notes the edition.

At the same time the amount of damage could appear many times more. The matter is that hackers, trying to send the next tranche to the account of Shalika Foundation non-profit organization, made a spelling error in its name — instead of a word "fund" (engl. foundation) fandation was written. As a result of it the bank through which there passed the payment, demanded explanation from the Central Bank of Bangladesh, and the regulator could block the transaction.^[2]

Hackers managed to steal $81 million by means of four tranches, however the fifth tranche, $20 million in size, was stopped by the staff of the Federal Reserve Bank (FRB) of New York who suspected wrong through which a transfer was made.

In one day - on February 5, 2016 - through the SWIFT system there passed 35 translation requests of funds from accounts of the Bangladesh Central Bank. It is noted that the total amount of transactions which hackers tried to carry out is $850-870 million.

See Also

• Bangladesh

Notes