The Market Monitor Minding the Nation's Business
By Luis Leoncio
The patience of the Bangladesh government over the recovery of the $81 million stolen from its central bank, Bangladesh Bank, is wearing thin.
State Minister for Finance MA Mannan was quoted as having accused the Philippines government of flip-flopping on its statements over the scandal.
Mannan told a pre-budget discussion with newspaper editors in Bangladesh he has been receiving “conflicting statements” from Philippines officials on the return of the stolen Bangladesh Bank funds.
“First they say it can be returned tomorrow, then they say it will take time.
I suspected (something was not okay) from the beginning and I still believe they are playing with us,” he said.
But Mannan later on backtracked and said the delay was not “intentional” and that the Philippines system was “like that.”
The Bangladeshi government said it remains in constant touch with Manila over the return of the money, hacked last February from Bangladesh Bank’s deposits with the Federal Reserve Bank in New York, wired to four bank accounts in Rizal Commercial Banking Corp. (RCBC) in Makati City through fake transaction advisories and eventually found its way to local casino operators.
The Anti Money Laundering Commission (AMLC), which is investigating the case, has already initiated proceedings to pave the way for the return of the stolen money. But the amount to be returned will constitute only a small percentage of the loot or only about 12.3 percent or P466 million of the peso equivalent of P3.8 billion of the stolen American dollars. Of the amount, P455.89 million has already been surrendered to the AMLC “for safekeeping.” A total of P10.223 million more is the subject of a provisional asset preservation order and is deposited in the accounts of Wong and his companies in accounts at RCBC and the Philippine National Bank.
Mannan said measures were being stepped up for the recovery of the stolen funds. “I think some Bangladesh Bank officials are now in New York, Colombo and Manila, and talking to authorities concerned,” he said.
He also revealed that another transfer advice for $20 million was made in the name of a fake non-governmental organization (NGO) in Sri Lanka, but it was stopped as the hackers misspelled the name of the NGO.
Bangladesh formed an investigating panel led by former Bangladesh Bank Governor Mohammad Farashuddin, which already has filed its “interim report” that is yet to be made public, however.
Bangladesh Finance Minister AMA Muhith said the panel will brief the media once the full report is in.
Meanwhile, the Bank and Financial Institutions Division (BFID) of the Bangladesh’s Ministry of Finance has drafted proposal for a Mutual Legal Assistance (MLA) request with the Philippines that will be signed by Mannan and which will be sent to local authorities this week.
Mannan his government was also trying its best to bring back stolen funds through the Financial Action Task Force (FATF) agreement.
“I know it will take time,” he said.
The Philippines and Bangladesh signed an MLA agreement under the Financial Action Task Force, an inter-governmental body developing and promoting policies to combat money laundering and terrorist financing.
The MLA request does not mention a figure.