3 Important Question about the Bangladesh Bank's US account hack

These are the top five (5) reasons and steps behind the hack and money transferred issue from Bangladesh Bank's US Account. Though Federal Reserve denies but the Philippines "Daily Inquirer" came up with a full proof detailed report about this whole incidents from the beginning to the end. Here are the five (5) points according to "Daily Inquirer" 

US banks

According to the documents provided by the Inquirer, the $81 million in inward remittance happened on February 5, 2016. As with all international wire transfers, the funds were cleared through US-based correspondent banks, in this case, the Bank of New York, Citibank and Wells Fargo, according to the branch manager’s representative.

The local counterpart was then notified of the incoming funds using the Swift (Society for Worldwide Interbank Financial Telecommunication) messaging system commonly used by banks for international transactions.

Businessman, casinos

The funds were deposited into the five bank accounts created a few months earlier and were transferred to foreign exchange broker Philrem for conversion into pesos. It was then transferred back to RCBC and consolidated into the bank account of a Chinese-Filipino businessman, who then moved it to the casinos.

Another government source told the Inquirer that the Chinese-Filipino businessman also took care of remitting the funds to Hong Kong after these were moved through local casinos.

System failure

“Yes, the casinos were part of the chain to transactions in this [suspected] laundering case, but there were several layers in the banking system before that, which should have detected these suspicious funds and stopped them,” the official said. “The system failed.”

Soon after RCBC released the funds to its client, the bank received a so-called “MT103” message through the Swift system recalling the $81 million and ordering a stop to another $870 million in inward transfers.

A banking source said the transfer of the $870 million was stopped in time, but the $81 million had already been released and, by the time authorities were alerted, had already been moved back offshore.

Hackers, Federal Reserve

Two officials of the Bangladesh Bank (the central monetary authority of Bangladesh) were also reported to have visited the Bangko Sentral ng Pilipinas to demand the return of the funds that were allegedly stolen by hackers based in China from its accounts with the US Federal Reserve.

The branch manager’s representative, meanwhile, said she was now afraid that she would be included by the Bangko Sentral ng Pilipinas in its so-called “orange list” of bankers found to have committed violations of important banking regulations, such as the know-your-customer rule under the Anti-Money Laundering Act.

Ordered by top execs

“The fact is, she was ordered to do it by top officials,” said the manager’s representative. He asked that the identities of the RCBC branch manager and himself be kept confidential due to the sensitivity of the issue until the Senate blue ribbon committee holds a public hearing on the matter on March 14.

“[The branch manager] is willing to testify,” he said. “She is clear that she did not violate any banking or anti-money laundering laws.”

So now what Federal Reserve will say? Will they still deny? But my three (3) question is:

1. How hackers got access to the account? I mean password. Does they broke the system? If hackers broke the entire system and logged in, don't you think every single Federal Reserve accounts are now in at high risk?

2. Isn't there any 2 or 3 step authentication system for transferring fund? Or, they broke that system too? Then where is the security? Even Google & Facebook does have this service to their free accounts!

3. Is this done by someone who knows the passwords or who have access to entry to the account? Obviously, someone official is related to this. Transferred balance from Federal Reserves to US Banks. Than US Banks to the Philippines Banks. Later Philippines Banks to Businessmen and from Businessman it came to Casino. And Casino transferred them into chips!

Now you can say to the world. What do you think?