Central Bank’s Image Damaged by Theft of Reserve

The preservation and supervision of foreign exchange reserves is one of the primary responsibilities of the central bank. For this reason, maximum security is maintained through various layers. However, breaching this security perimeter, the reserves were stolen, with allegations of involvement against various domestic and foreign individuals and organizations. Such an incident has damaged the image and prestige of both the country and the central bank, while the state also faced financial losses. Following a lengthy investigation, a draft charge sheet for the case has been sent to the Attorney General's Office. The final report will be submitted after obtaining legal opinion, following which the judicial process will commence.

Arif Hossain Khan, spokesperson and executive director of Bangladesh Bank, made these remarks today, Thursday, while sharing the institution's response regarding the reserve theft issue.

Arif Hossain Khan, spokesperson and executive director of Bangladesh Bank.

He said, "The names of several Bangladesh Bank officials have appeared in the media reports. However, what matters most is what the final charge sheet contains and what decision is reached in the court's verdict after the trial. Once this case is resolved, Bangladesh Bank will get a state of relief, as this incident was a major blow to the institution's image."

Expressing his personal feelings, Arif Hossain Khan mentioned that as an official of Bangladesh Bank, he too was concerned about the incident. In his words, "An incident of this nature has tarnished the image of our glorious institution. Exemplary justice is needed so that no official or individual dares to harm the state or the institution through negligence or deliberate intent."

"Whether domestic or foreign, Bangladesh Bank's stance will remain firmly against anyone whose involvement is proven. The same perspective will be applied to everyone, regardless of whether they are former officials or individuals from other organizations."

After nearly a decade of investigation, the reserve theft case has finally gained momentum. The Criminal Investigation Department (CID) has accused 64 domestic and foreign individuals and institutions in the draft charge sheet. Extensive forensic evidence against the perpetrators has emerged in the 10,000-page case docket and draft charge sheet.

According to CID sources, $101 million was stolen in February 2016 from Bangladesh Bank's reserve account held at the Federal Reserve Bank of New York. Unidentified hackers siphoned off this massive amount of money by sending fraudulent messages through the SWIFT payment system. Thirty-nine days after the incident, Bangladesh Bank filed a case under the Money Laundering Prevention Act at the Motijheel Police Station in the capital. The CID has been investigating the case since the beginning.

Multiple sources associated with this specialized police unit had said on March 11 last year, the interim government formed a six-member review committee through a gazette notification, headed by former Law Adviser Dr. Asif Nazrul. The investigation into the reserve theft case was completed under the supervision of that committee. The draft charge sheet includes 36 individuals and entities from the Philippines, 2 from North Korea, 3 from China, 8 from Sri Lanka, 1 from Japan, 4 from India, and 10 people from Bangladesh.