Bangladesh bank chief to quit amid $100 mln hacking scandal

Staff Writer
Columbus CEO

NEW DELHI (AP) — The head of Bangladesh's central bank said Tuesday he would resign from his post, after hackers managed to divert $101 million from the country's account with the Federal Reserve Bank in New York.

Bangladesh Bank Governor Atiur Rahman told reporters he was ready to quit after spending seven years in the top bank post.

"If my resignation is better for the Bangladesh Bank, I have no hesitation," he said, and that he was waiting for the prime minister's response.

The finance minister was expected to make a public statement later Tuesday. Last week he said Bangladesh was considering suing the U.S. bank over the loss of the funds, which are thought to have been transferred to the Philippines and Sri Lanka.

However, the New York Fed said it found no evidence its own systems were compromised, and attention increasingly has focused on suspected vulnerabilities in Bangladesh Bank's cybersecurity.

In Manila, Philippines, a Senate committee opened an inquiry Tuesday into how about $81 million of Bangladesh's stolen funds were transmitted online to four private accounts at a branch of the Rizal Commercial Banking Corp., or RCBC, and who could be criminally liable.

Julia Bacay-Abad, executive director of the government's Anti-Money Laundering Council, told the committee that Bangladesh's central bank called to notify the head of Manila's central bank early last month about the transfer of its stolen money to a Philippine bank and requested that the funds be frozen.