From IB Times - Timeline for the Bangladesh $81 million heist
3/24 (One wonders why Kim Wong would still keep the name of the Chinese junket operator yesterday when this is well known all readyworld wide
Timeline on RCBC money laundering case from Rappler
From New Age - RCBC allowed withdrawals despite stop payment order
But this came too late when most of the funds have been withdrawn. Either you are quick or dead.
Philippines
March 30, 2016
The RCBC money laundering case, if we are to believe the story tellers, are lessons in timing (promptness) and obedience and compliance to procedure. It also shows lapses in vigilance and attention to details. It can happen to anyone. But RCBC, having ignored the stop payment order for the remaining amounts, still not withdrawn could be held liable for the amounts withdrawn after the stop payment order
Feb. 5-13: RCBC wired about $81 million (P3.7 billion) from the “Go” account to Philrem Service Corp. It was then converted into pesos. The $29 million (P1.3 billion) was delivered to Bloomberry Resorts Corp.’s Solaire Resort and Casino Junket operator Eastern Hawaii Leisure Co. Ltd (owned by Kim Wong). also received $21.2 million (P982 million), while Weikang Xu, a gaming room promoter for Solaire, received $30.6 million (P1.4 billion).
Feb. 11: The AMLC found out about the $81 million (P3.7 billion) bank heist from Rahman who called up Tetangco about it. (they were late)
Feb. 9: RCBC received a SWIFT code from Bangladesh Bank. It asked for a refund or a "stop payment" so that the transferred funds will be frozen, or put on hold for proper investigation. However, RCBC still allowed the withdrawals, amounting to $58.15 million (P2.6 billion) despite the "stop payment" order.
RCBC said that around 7:45 p.m., it placed the accounts involved on hold. But only $68,305 (P3.1 million) was left by then. Four people withdrew the remaining $58.15 million (P2.6 billion) from the four accounts at RCBC. These were transferred to the “Go” account. (Here is where the non compliance took place. The money was withdrawn despite a hold order)
Feb. 8: Bangladesh Bank sent a "stop payment" order to RCBC at 5:00 p.m. on the Chinese New Year holiday. The former learned that $101 million (P4.6 billion) was transferred, including the $20 million (P927 million) to PABC and the $81 million (P3.7 billion) to RCBC. Another $850 million (P39.4 billion) in transactions were stopped.
Feb. 6: Bangladesh Bank found queries from the NY Fed against 46 payment orders. It also noticed a software problem.
Feb. 5: Bangladesh Bank discovered a lot of questionable transactions. Meanwhile, a bank account under “William Go” was opened at RCBC. A man named Jessie Christopher Lagrosas allegedly withdrew $22.7 million (P1.05 billion) over the counter at RCBC. RCBC branch manager Maia Santos Deguito allowed the withdrawal. The same amount was deposited in the “William Go” account.
According to the Philippine Daily Inquirer, $30 million (P1.3 billion) was deposited to Lagrosas. Another $6 million (P278 million) was deposited to Michael Cruz’s account, $25 million (P1.1 billion) to Enrico Vasquez and $19.99 million (P926 million) to Alfred Vergara. The total amount in these accounts were consolidated and deposited in William So Go’s dollar account.
Feb. 4, 2016: Hackers issued at least 35 Bangladesh Bank (BB) SWIFT payment instructions to the Federal Reserve Bank of New York (NY Fed). It involved $951 million (P44 billion). Four payments of $81 million (P3.7 billion) were cleared at the RCBC Jupiter branch. Another $20 million (P927 million) cleared at Sri Lanka’s PABC. The amount that was supposed to be transferred to a fake Sri Lankan foundation was halted because of a typographical error.
May 15, 2015: Four bank accounts were opened in the Jupiter, Makati branch of RCBC. Three dollar bank accounts were opened under the names of Michael Francisco Cruz, Enrico Teodoro Vasquez, Alfred Santos Vergara, and Jessie Christopher Lagrosas. Each had an initial deposit of $500 (P23,175). These accounts were later found to be fake and remained unused until Feb. 4, 2016.
Would RCBC have unilaterally stopped froze the accounts,or stopped payment. No said the head of the legal counsel of RCBC Estavilo. They do not have any authority especially for dollar account which needs consent of the depositor (it is dilemna if the account holder is fictitious) but that is the law. Only AMLC can freeze accounts, under the law and it needs a court order. AMLC was able to obtain a freeze order on March 1, 2016. By that time (despite the statement of the Exec Director that they acted with haste) most of the money was gone
Can RCBC be held liable for allowing withdrawals despite request for stop payment. ?
I do not think so if the law does not allow them. Could they be charged with negligence or failure to observe strict standards and vigilance? I dont think so. The loopholes of the law were studied well by the criminals for a nearly perfect crime
Can RCBC be held liable for allowing withdrawals despite request for stop payment. ?
I do not think so if the law does not allow them. Could they be charged with negligence or failure to observe strict standards and vigilance? I dont think so. The loopholes of the law were studied well by the criminals for a nearly perfect crime