10/2/2016 HowBangladeshBankdirtymoneyeasilygotintoPH

TIMELINE: Tracing the $81-million stolen fund from Bangladesh Bank

(UPDATED)Here'sthetimelinesofarofhowthe$81millionfundfromBangladeshBank'saccountwiththe
FederalReserveBankofNewYorkwascoursedthroughthePhilippines

By Chrisee Dela Paz

Published: Wed, Mar 16, 2016 6:10 PM

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10/2/2016 HowBangladeshBankdirtymoneyeasilygotintoPH

STILL BLURRY. The investigation over the mysterious electronic theft of $81 million from Bangladeshs ofcial account at the Federal
Reserve Bank of New York drags on.

MANILA,Philippines(5thUPDATE)Ithasbeenoveramonthsincethe$81millionfundfrom
BangladeshBank'saccountwiththetheFederalReserveBankofNewYorkwasstolenbyhackers
andcoursedthroughthePhilippines.

Butuntilnow,Philippineauthoritieshavenoclearpictureoftheexactlocationofthesupposed
stolenmoney.(READ:HowBangladeshBankdirtymoneyeasilygotintoPH)

Rapplertracesthetransactionsmadebyunknownhackersthroughconsolidatedreportsfromthe
AntiMoneyLaunderingCouncil,SenateBlueRibbonCommittee,testimoniesofkeyresource
people,andothernewsreports:

May15,2015ThreedollarbankaccountsintheJupiter,MakatibranchoftheRizalCommercial
BankingCorporation(RCBC)wereopenedunderthenamesofEnricoTeodoroVasquez,Alfred
SantosVergara,MichaelFranciscoCruzandJessieChristopherLagrosas,withaninitialdepositof
$500each.Theseaccounts,whichwerelaterfoundtobefake,remainedidleuntilFebruary4,
2016.

February4,2016HackersbrokeintoBangladeshBank'saccountwiththeFederalReserve
BankofNewYork,ordering35transfersworth$951million,bulkofwhichtobetransferredto
RCBCJupiterbranch.

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10/2/2016 HowBangladeshBankdirtymoneyeasilygotintoPH

TheFederalReserveBankdidnotexecute30ofthe35transfersdueto"lackofdetails."The
remaining5transfersworth$101millioncouldnotbeblocked,but$20millionhasbeensalvaged.
ThiswasafteraninstructiontoafakeSriLankanfoundationwasputonholdbecauseofa
typographicalmistake.(READ:Faultyprinterlinkedtobankheist)

Buttheremaining$81millionstolenfundsfoundtheirwayto4fakebankaccountsinRCBC.

AccordingtothePhilippineDailyInquirer,$6millionwasdepositedtoCruzsaccount,$19.99
milliontoVergara,$25milliontoVasquez,andbulkor$30milliontoLagrosas.

MoneywasthenconsolidatedanddepositedinadollaraccountofWilliamSoGoofDBA
CenturytexTrading,whichwasopenedonthesameday.

February5toFebruary13FromWilliamSoGosaccount,theallegedstolenfundsfrom
BangladeshBankweretransferredtomoneytransfercompanyPhilremServicesCorporation.

Philremconvertedintopesossomeofthe$81millionanddeliveredthemoneyincashtranchesto
aregisteredcasinojunketoperatornamedWeikangXu,EasternHawaiiLeisureCompany,and
BloomberryHotelsIncorporated(SolaireResort&Casino).(READ:$81Mbankheistmoneytrail
hitsdeadendincasinos)

February8BangladeshBanksenta"stoppayment"ordertoRCBC.Therequestmeansthe
centralbankwasaskingtorefundthestolenfundsorfreezethefundsifthesewerenottransferred
yet.

February8isaChineseNewYearnonworkingholidayforthePhilippines.

February9RCBCreceivedaSWIFTcodefromBangladeshBankrequestingforarefundor
puttingitonholdifthefundshadbeentransferredorfreezethemforproperinvestigation.

Despitethe"stoppayment"order,RCBCJupiterbranchstillallowedwithdrawalsfromthe
accounts,amountingto$58.15million.

SWIFTortheSocietyforWorldwideInterbankFinancialTelecommunicationisusedasmessaging
systembybanksforinternationaltransactions.

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10/2/2016 HowBangladeshBankdirtymoneyeasilygotintoPH

FICTITIOUS ACCOUNTS

February16BangladeshBankGovernorAtiurRahmantoldBangkoSentralngPilipinas
GovernorAmandoTetangcoJrthatSWIFTcodeMT103onFebruary4,whichorderedtheinward
remittancetothePhilippinesof$81million,"isfraudulent."

RahmanthenaskedTetangcotohelpthemregainthelossof$81millionfromtheiraccountwith
theFederalReserveBank.

February19TheAntiMoneyLaunderingCouncil(AMLC)starteditsinvestigationoninvolved
banksandaccountholders.

February23TherealWilliamSoGosaidDeguitoaskedhimtomeetheratFortBonifacio,
Taguig,whichmadethebusinessman"suspicious."

GosaidthatDeguitorevealedtohimthatsheopenedfictitiousdollarandpesobankaccountsfor
CenturytexatRCBCJupiterwithouthisknowledge.(READ:ExS&RownertosueRCBCmanager
overheist)

February29ThePhilippineDailyInquirerbrokethestory,citingdocumentsshownbya
representativeofRCBCJupiterbranchmanagerMaiaSantosDeguito.

March1TheCourtofAppealsstartedfreezingfor6monthstheaccountsofCruz,Lagrosas,
Vergara,Vasquez,SoGo,CenturytexTrading,KamSinWong,andotherrelatedaccounts.(READ:
RCBCmanager,othersfaceantimoneylaunderingcomplaint)
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10/2/2016 HowBangladeshBankdirtymoneyeasilygotintoPH

ThiswasinaccordancewithAMLC'srequesttofreeze44bankaccountsforproperinvestigation.

March12DeguitoandherhusbandwereaboardPhilippineAirlines(PAL)Flight432goingto
Tokyo,Japan,butwereoffloadedduetotheimmigrationbureau'sorders.

March15TheSenateBlueRibbonCommitteeconducteditsfirsthearingontheBangladesh
Bankfundheist.

TheBangladeshBankgovernorresigned,while3ofhissubordinateswerefired.

March17OntheresumptionoftheSenateBlueRibbonCommitteeprobe,RCBCdisclosesthat
Go'ssignaturesinhissupposedJupiteraccountswereforged."Therewasasimulatedforgery.The
bankconsiderstheseaccountsdonotbelongtoWilliamSoGo,"saidRCBCchieflegalcounsel
MariaCeliaEstavillo.

RCBCJupiterbranchmanagerDeguitoalsodisclosedthatnolessthanthebank'sCEOand
president,LorenzoTan,whorecruitedhertoRCBC.(READ:RCBCbankmanager:CEOLorenzo
Tan'invitedme'tojoinbank)
none
Fournamesalsocroppedupduringtheprobe.

OneofthemisbankerofficerRomualdoAgarrado,whotestifiedthatDeguitoknewaboutthe"stop TRENDING
payment"butproceededwithreleasingthemoney,tellinghimshefearedforherlife.(READ: NOW
Philippines
RCBCbranchmanager:'I'dratherreleasemoneythangetmyselfkilled')Rappler.com

Bangladesh Bank Bangladesh Bangladesh Central Bank Banking Laws

Philippine Banking System AMLA Anti-Money Laundering Act Anti-Money Laundering Council

Money Laundering Philrem RCBC William So Go Maia Santos-Deguito

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How Bangladesh Bank dirty money easily got into PH

ThebiggestmoneylaunderingscandaltohitthePhilippinesdrawsattentiontotheurgencyofputtingmoreteeth
intotheAntiMoneyLaunderingAct

By Chrisee Dela Paz
Published: Mon, Mar 14, 2016 9:41 PM
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#NOTONMYWATCH
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10/2/2016 HowBangladeshBankdirtymoneyeasilygotintoPH

LINK TO ROBBED FUNDS. The government is investigating what could

nonebe the biggest money laundering case in Philippine history.
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MANILA,PhilippinesInthefalloutofthe$100millionBangladeshBankheist,thePhilippine TRENDING
financialindustrybecamefrontandcenterinthemedia,raisingquestionsonhowsuchahuge NOW
Philippines
amountofdirtymoneyeasilygotintothecountry.
#NOTONMYWATCH

ThemoneywascoursedthroughPhilippines'bankingsystem,depositedtoaFilipinoChinese
Do you want to help put an end to corruption? Be part of Rappler's #NotOnMyWatch.
businessman'sbankaccount,andtransferredto3largecasinosthesearejustsomeimportant
Facebook Twitter
detailsinastorythatisdevelopingintothebiggestdocumentedcaseofmoneylaunderingin
Philippinehistory.
.
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Withlessthantwomonthsleftbeforethecurrentadministrationends,thiscouldevenstain
PresidentBenignoAquinoIII'slegacyofminimizingcorruptioninthecountry,withthe
Philippinesindangerofreturningtothe"graylist"oftheFinancialActionTaskForce(FATF).

What'stheBangladeshBankstory?

ThelaunderedmoneycamefromtheaccountofthecentralbankofBangladesh,alowermiddle
incomenationandoneoftheworld'smostdenselypopulatedcountries.

InearlyFebruary,authoritiesofBangladeshBankwereinformedthatabout$100million
wasillegallytakenoutofitsaccountwiththeFederalReserveBankofNewYorkusingan
interbankmessagingsystemknownasSWIFT.

http://www.rappler.com/business/industries/bankingandfinancialservices/125999timelinemoneylaunderingbangladeshbank 8/12
10/2/2016 HowBangladeshBankdirtymoneyeasilygotintoPH

Thelaunderedmoneywasmovedviatransferrequests,withabout$81millionendingupinbank
accountsinthePhilippines.Theother$20millionwenttoanaccountinSriLanka.

Another$850millionwassupposedtobewiredtopersonalbankaccountsinthePhilippines,but
wasblockedbyauthoritiesjustintime,accordingtoaPhilippineDailyInquirerreport.

The$81millionwasinitiallywiredtothePhilippines,goinginto4RizalCommercialBanking
Corporation(RCBC)foreigncurrencyaccountsinitsJupiter,Makatibranch.

ThestolenmoneywasthenconsolidatedintotwoforeigncurrencyaccountslinkedtoFilipino
ChinesebusinessmanWilliamGo,andthenmovedtoMidasHotelandCasino,CityofDreams,and
SolaireResortandCasino.

TheBureauofImmigrationonFriday,March12,barredMaiaSantosDeguitomanagerofRCBC

JupiterfromleavingthePhilippines.

Meanwhile,Go,whousedtoownS&RMembershipShopping,hasdeniedinanaffidavittothe
NationalBureauofInvestigationthatheopenedtheRCBCaccount.Hissupposedforeigncurrency
accountsoneinhisnameandanotherinthenameofhisbusinessCenturytexTradingwere
none 76%
allegedlyusedtoholdthebulkofthelaunderedmoney. Angry

Go'slawyer,RamonEsguerra,toldreportersonFriday,March12,thatDeguitometupwithGo, TRENDING
NOW
offeringuptoP20million($430,000)tocoverupthetransactionsbyclosingtheaccounts.(READ:
Philippines
#NOTONMYWATCH
ExS&RownertosueRCBCmanageroverheist)

ThePhilippineSenateonTuesday,March15,issettoholdahearingonthemoneylaundering
Do you want to help put an end to corruption? Be part of Rappler's #NotOnMyWatch.

case. Facebook Twitter

KeyresourcepeopleincludemembersoftheAntiMoneyLaunderingCouncil(AMLC)ledbyits
.
chair,BangkoSentralngPilipinasGovernorChairAmandoTetangcoJrRCBCpresidentandCEO
Here are some stories that made people
LorenzoTanPhilippineAmusementandGamingCorporationchairandCEOCristinoNaguiatJr
andofficialsofSolaireResortandCasino,MidasHotelandCasino,andCityofDreams.

EaseoffundtransfertoPH

ThePhilippines'involvementinthe$100millionBangladeshBankheist,whichhasriskedits
returntotheFATFgraylist,showedtheurgencyofputtingmoreteethintotheAntiMoney
LaunderingAct(AMLA),saidSecuritiesandExchangeCommissionchairpersonTeresitaHerbosa,
whocochairsAMLC.

Thelaw,whichwasfirstintroducedin2001,leftcasinosoutofthelistofentitiesrequiredtoreport
suspicioustransactionstotheAMLC.TherewereeffortsintheSenatetoincludethisprovisionin

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10/2/2016 HowBangladeshBankdirtymoneyeasilygotintoPH

theamendedAMLAin2013,butthiswasblockedbysomelawmakers,andPAGCOR.(READ:
Casinosexemptfromtougherantimoneylaunderinglaw)

Atthetime,thecountrywasatriskofbeingblacklistedbyFATFwithoutanamendedAMLAbythe
deadlinesetbythebody.

Herbosasaidnotrequiringcasinostoreportsuspicioustransactionsmighthaveallowedtheeasy
entryofdirtymoneyintolocalcasinosjustlikewhatsupposedlyhappenedinthecaseofthe
BangladeshBankfunds.

"It'saglobalefforttoeradicatemoneylaundering.Wehavetocatchupwithpeopledoingthat
activityandwhilewearedoingthatweneedtostrengthenthelawsofeachcountrytocomfortto
bestpractices,Herbosasaid.

ForSenatorSergioOsmeaIII,AMLAauthor,thecasinoswereexcludedfromthescopeofthelaw
duetostronglobbyingofcompanies.

OsmeasaiditisnowuptothenextCongresstopasstheneededamendment.Headdedthat
Aquino'ssuccessor"shouldstronglyreconsiderthebanksecrecylaw."
none 76%
Angry
"Wehavethestrictestbanksecrecylawinthewholeworld.Congressdoesn'twanttoloosenitup.

Why?YouandIhaveourownguesses.It'sveryeasyforcriminalstohidetheirmoneyinthe TRENDING
NOW
Philippines.Asamatteroffact,weareoneofthemostactivemoneylaunderingcentersinthe
Philippines
#NOTONMYWATCH
world,"OsmeatoldANC'sNewsNow.

AnotherloopholeisthatAMLCcanonlylookintoanaccountoncetheconcernedpartyis
Do you want to help put an end to corruption? Be part of Rappler's #NotOnMyWatch.

informed,alsoknownasadeparteinquiry,SenatorTeofistoGuingonaIIIhadearlierraised.
Facebook Twitter

"Asaresult,onceinformed,manyhaveresortedtoemptyingouttheirbankaccountsbeforethe
.
governmentcaninquireintothem.Logicandnecessitydemandthatweallowforanexparte
Here are some stories that made people
inquiry,"Guingonaearliersaidinablogpost.

AccordingtotheGuingona,AMLCshouldbeallowedtolookintoaccountsofpeopleeven
withouttheirpresencewhenthereisprobablecaseofmoneylaunderingoranyunlawfulactivity.

OFWsbiggestloserifPHblacklisted

IfthePhilippinesreturnstotheFATFgraylist,lawmakershavesaidthatoverseasFilipinoworkers
andtheirfamilieswillbethehardesthit.ThisisbecauseFATFmembercountrieswillimplement
theenhancedverificationofmoneygoinginandoutofthePhilippinesifthishappens.

WhentheAMLAamendmentswerestillbeingdeliberatedinCongressin2012,Guingonatold
Rappler:"They'llmakeitharderbecausethepresumptionnowisyouhavetoprovethatyour

http://www.rappler.com/business/industries/bankingandfinancialservices/125999timelinemoneylaunderingbangladeshbank 10/12
10/2/2016 HowBangladeshBankdirtymoneyeasilygotintoPH

moneyislegal.You'reblacklistedsoproveyourmoneyisreallylegitimateandnotsourcedfroman
illegalsource.It'sthereverse,"(READ:SenatecaucusonAMLAblacklistingfeared)

ForOsmea,whochairstheSenatecommitteeonbanks,financialinstitutionsandcurrencies,the
Philippineswillbeatthelosingendbecauselocalbankswon'tbeabletotransactwiththeir
counterpartsinFATFcountries.

AsidefromOFWs,Guingonahadsaidablacklistwillalsoaffectbusinessbecausecompanieswill
havedifficultysendingmoneytothePhilippines.

FATFhasover30membercountriesrepresentingmajorfinancialcentersliketheUS,UK,
Germany,France,China,Japan,andSouthKorea.

Thislatestmoneylaunderingscandaldrawsattentiontoanoutdatedlaw,makingiteasyfor

criminalstohidedirtymoneyinthePhilippinesandhardfortheauthoritiestoinvestigatesuch
cases.

WiththeSenatehearingsetonTuesday,March15,authoritieswillhopefullydiscusshowtheycan
plugloopholesintheoutdatedAMLA.Rappler.com
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