Filipino Senate’s Blue Ribbon Committee on Thursday concluded its public hearing on the money laundering of Bangladesh Bank’s $81-million fund, funneled by hackers to a Philippine bank with the Bangladesh ambassador in Manila expressing hopes for recovery of the entire amount.
“I am confident that the Philippine government will be able to recover this $81 million because we do not want it to drag us forever,” ambassador John Gomes said.
He thanked the panel members for going out of their way to finish the investigation, which resulted in the recovery of some of the funds – diverted in February by hackers from an account in the Federal Reserve of New York to logus accounts in Rizal Commercial Banking Corp. and then laundered in local casinos.
“I am very, very grateful to the BRC (Blue Ribbon Committee) and other members for going all the way, giving all the time, even during the election. Instead of campaigning, they were all here doing this for us,” Gomes said.
“That proves that we have excellent bilateral relations,” he added.
Gomes also thanked the Anti-Money Laundering Council (AMLC) for actively pursuing the case against those involved in the laundering of their stolen funds.
“What the Philippines is doing is highly regarded in Bangladesh,” Gomes said.
Senator Teofisto Guingona, head of the blue ribbon panel, which conducted seven public hearings on the matter, recommended to the next Congress the inclusion of casinos, remittance companies, real estate brokers and jewelry shops into the fold of the Anti-Money Laundering Act (AMLA).
$38 million still missing
Of the $81 million hacked funds, $38 million remains missing, according to Anti-Money Laundering Council Executive Director Julia Bacay-Abad.
Making an accounting of the money returned by casino junket operator Kim Wong for safekeeping of the council, Abad said P1.3 billion or about $28 million went to Solaire Resort and Casino Manila.
The amount was initially frozen by the Court of Appeals, but the freeze order was later lifted by the court. It is now the subject of a petition before the Supreme Court, Abad was quoted as saying in a newspaper report.
Earlier, Wong turned over $15 million to AMLC for its safekeeping. Abad said there is still $17 million missing, which was reportedly with the remittance company Philrem Service Corp.
“So far your honour, we have just accounted for the $60 million and we’re still looking for the remaining $21 million,” Abad said during the hearing.
Bangladesh bank official’s computer hacked
Gomes, in a report by Reuters, revealed that the computer of a Bangladeshi central bank official was hacked to make payments through SWIFT and carry out the cyber heist.
Citing information from the US Federal Bureau of Investigation (FBI), Gomes said the hackers were neither in the Philippines nor in Bangladesh, but said he had no other information.
“One of our bank officials who is in the group that makes payments, that passes the payment instructions, his computer was hacked,” Gomes said.
“It was a Friday when the attack happened and the Bangladesh central bank is totally shut down. It was all sealed and no one goes to the bank on that day.”
There was no evidence directly linking anyone in Bangladesh to the February cyber heist, Gomes said.
PhilRem a no-show
Meanwhile, officials of remittance firm PhilRem Service Corp. did not show up during the hearing.
“They did not show up. They sent a letter asking for understanding since a criminal case has been filed against them,” Guingona said. He was referring to Philrem president Salud Bautista and her husband Michael Bautista. The couple have been attending previous hearings of the blue ribbon committee.
Philrem is currently facing complaints filed by the Anti-Money Laundering Council (AMLC) before the Department of Justice.
Source: Prothom Alo