In one of the most audacious financial heists in recent memory, a staggering $81 million made its way from the Bangladesh Bank to Rizal Commercial Banking Corporation, Phillipines and from there to various junket operators, finally landing in casinos across Philippines.
Casino scam: Manila connection
This sophisticated operation sent shockwaves through the global banking and gambling industries, exposing vulnerabilities and raising questions about security and regulatory oversight.
In February 2016, cybercriminals targeted the Bangladesh Bank, the country’s central bank, attempting to steal nearly $1 billion taking advantage of loopholes in global financial system.
While most of the attempts were unsuccessful, the hackers managed to transfer $101 million from the bank’s account with the Federal Reserve Bank of New York to several accounts in the Philippines and Sri Lanka. Of the $101 million, $20 million were laundered through Sri Lanka.
Upon arrival in the Philippines, the stolen funds of remaining $81 million found their way into the local casino industry via junket operators. Reports suggest that a significant portion of the pilfered money was laundered through high-stakes baccarat tables, where large sums of cash can be anonymously wagered and quickly converted into chips.
The scandal came to light when suspicious transactions were detected at the Philippine casinos involved. The country’s Anti-Money Laundering Council (AMLC) launched an investigation, revealing that the funds had been funneled into the accounts of several individuals, including local casino players and employees.
Casino and money laundering laws
The case exposed significant gaps in regulatory oversight within the Philippine casino industry. Unlike banks, casinos were not subjected to the same stringent anti-money laundering regulations, allowing illicit funds to flow through the system with relative ease. This incident served as a wake-up call for the Philippine government and prompted the introduction of tighter regulations in subsequent years.
The international community, including law enforcement agencies and financial institutions, joined forces to track down the stolen funds and identify the culprits behind the cyberattack. Cooperation between the authorities in Bangladesh, the Philippines, and the United States played a crucial role in unraveling the complex web of money laundering and tracing the movement of the stolen funds.
Casino Bangladesh Bank Heist: Aftermath
The $81 million heist stands as a stark reminder of the ever-evolving threats faced by the global financial system. This audacious scam exposed the vulnerabilities within the banking and gambling sectors and prompted a collective effort to bolster security measures and tighten regulations. As the industry adapts to the evolving landscape of cybercrime, it remains critical for governments and institutions to remain vigilant and stay one step ahead in the fight against financial fraud and illicit activities.