Bangladesh Bank board for ensuring foolproof IT security

Last updated: April 7, 2016

Dhaka, Bangladesh (BBN)- The central bank of Bangladesh’s board in its maiden meeting asked top management to ensure foolproof IT security system for banking to avert cyber crime.
The Bangladesh Bank (BB) board has also discussed in detail how the cyber heist in its overseas reserves occurred and how such fraud could be prevented.
The newly appointed Bangladesh Bank Governor, Fazle Kabir, presided over the meeting at the BB headquarters in Dhaka on Wednesday.
He joined the BB as its 11th governor on March 20 last following a top-level shakeup amid a row over the trans-national bank burglary through cyber-channel.
Mr. Kabir, a former finance secretary, got the appointment on March 16 following the resignation of Dr Atiur Rahman on March 15 amid the row over the stealing of $101 million from BB’s foreign-exchange reserve account with the US Federal Reserve Bank.
“We’ve informed the board about our initiatives for recovering $81 million of the stolen money from the Philippines,” a senior BB official told BBN in Dhaka after the nearly four-hour-long meeting.
He also said the central bank is now maintaining close contact with the concerned authorities of the Philippines to recover the stolen funds quickly.
Besides, the government earlier appointed three directors—Dr. Jamaluddin Ahmed FCA, Dr. Rushidan Islam Rahman and Eunusur Rahman, secretary of the Bank and Financial Institutions Division (BFID) of the Ministry of Finance.
“We’ve informed our board about the cyber heist in detail,” BB spokesperson Shubhankar Saha told reporters at an official briefing.
He also said the board advised the central bank about taking effective measures to develop IT-security system at a desired level for ensuring its cyber security.
The cyber fraud took place on the night of February 4 through sending a total of 35 transfer orders into the US Federal Reserve Bank in New York where the central bank of Bangladesh maintains a foreign-exchange account.
Nearly $20 million of the $101 million siphoned off was recovered from Sri Lanka. The lion’s share of the money landed in the Philippines.

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