Date
22 September 2017
Bangladesh's central bank is said to have hired a US lawyer for a potential lawsuit against the New York Fed in connection with last month's cyber heist. Photo: Reuters
Bangladesh's central bank is said to have hired a US lawyer for a potential lawsuit against the New York Fed in connection with last month's cyber heist. Photo: Reuters

Bangladesh Bank mulls lawsuit against NY Fed over hack

Bangladesh’s central bank is weighing the possibility of a lawsuit against the Federal Reserve Bank of New York after hackers stole US$81 million from the Bangladesh bank’s account with the NY Fed, according to Reuters.

In an internal report over last month’s hacking incident, Bangladesh Bank criticized the New York Fed, saying that the latter has allowed five of 35 fraudulent payment instructions to go through, the report said.

“We view this as a major lapse,” Bangladesh Bank was quoted as saying in the report, a copy of which was obtained by Reuters.

In one of the largest cyber heists in history, hackers ordered the NY Fed to transfer US$81 million from Bangladesh central bank funds to accounts in the Philippines.

The Bangladesh Bank is now said to have hired an American lawyer for a potential lawsuit against the NY Fed. 

The bank said in its interim report that it is considering “preparing the ground to make a legitimate claim for the loss of funds” against the New York Fed “through a legal process.”

After the report surfaced on Tuesday in the Bangladesh capital of Dhaka, US lawmaker Carolyn Maloney called for a probe of the cyber attack on Bangladesh Bank.

“This brazen heist from the Bangladesh central bank’s account at the New York Fed threatens to undermine the confidence that foreign central banks have in the Federal Reserve, and in the safety and soundness of international monetary transactions,” Maloney said in a statement.

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RC

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