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DOJ files official claim for Bangladesh over $15M of stolen funds
Seven months after $81-million of its funds was stolen in a cross-border money laundering scheme in February, Bangladesh has taken the first legal step to claim at least $15 million.
On behalf of Dhaka, the Department of Justice (DOJ) has filed for claims to have the money returned to Bangladesh.
The DOJ is helping Bangladesh recoup the funds under mutual legal assistance, as the Philippines and Bangladesh are signatories to the United Nations Convention on Transnational Organized Crimes, said DOJ Chief State Counsel Ricardo V. Paras III said.
In an emailed statement on Wednesday, the Finance Department said the claim was filed on August 26 and the Manila Regional Trial Court deemed the filing as "sufficient in form and substance" on August 30.
In a separate text message to GMA News Online on Thursday, Bangladeshi Ambassador to the Philippines John Gomes said he expects a ruling on the matter sooner than later. "By next week, hopefully."
The $15 million, believed to be part of the $81 million stolen from the Bangladesh Bank's account at the Federal Reserve Bank of New York by still unidentified hackers, was transferred to fictitious accounts at the Jupiter branch of Rizal Commercial Banking Corp. (RCBC) in Makati City. The funds were then transferred to casinos and junket operators, mostly through remittance firm PhilRem Service Corp.
The amount was surrendered by casino junket operator Kam Sin "Kim" Wong, who claimed he accepted the funds as payment for the debt of other Chinese junket operators – not knowing that money was part of the stolen funds.
The money was turned over to the AMLC in four tranches:
- P200 million on April 19 – through Wong's company Eastern Hawaii Leisure Co. Ltd.
The court forfeited the money – stored in the vaults of the Bangko Sentral ng Pilipinas – in favor of the Philippine government on July 7.
A civil forfeiture case seeks to confiscate money and assets believed to have been acquired through theft, terrorism, and kidnapping as defined under Republic Act 9160 or the Anti-Money Laundering Act of 2001.
Under the Rules of Civil Procedure, the Manila RTC gave the Office of the Solicitor General (OSG) 15 days to comment on the petition, after which the court will render a decision.
"After filing their (OSG) comment, we will not wait for the judgment of the court for the $15 million," said Paras.
Gomes earlier said that they were working closely with the DOJ and the Anti-Money Laundering Council (AMLC) to recover the stolen funds.
"The DOJ, AMLC, they are now working on our behalf to get this money back to Bangladesh. So out of the $81 million, definitely $15 million is something that is within our reach," he said in July.
The Philippine government has assured Dhaka of total support, but emphasized that legal procedures must be followed in regaining the funds.
President Rodrigo Duterte has assured Gomes that the Philippines will "do whatever it takes" to hasten the recovery of the stolen funds.
The ambassador said some $17.75 million may be returned to Bangladesh very soon.
Apart from the $15 million, $2.75 million from other casinos has been frozen and the Supreme Court (SC) has issued temporary restraining order (TRO) so that the money cannot be transferred elsewhere.
Paras noted some $2.3 million worth of chips was voluntarily frozen by Solaire Resort and Casino may also be subject of a civil forfeiture case.
Bangladesh Finance Minister Abul Maal Abdul Muhith is expected to visit Manila on September 28 and 29 to meet with local officials regarding the stolen funds. — VDS, GMA News
