The deadline for submitting the investigation report in the Bangladesh Bank reserve theft case has been postponed yet again, with the Criminal Investigation Department (CID) failing to file its report on the scheduled date. The court has now fixed 14 September as the next deadline, marking the 97th postponement in the case.
The case, which dates back nearly a decade, has become one of Bangladesh’s most prolonged and closely watched financial crime investigations. On Sunday, 9 August, the report was scheduled to be submitted before the court of Dhaka Additional Chief Metropolitan Magistrate Sefatullah. However, as the CID failed to complete and submit the report, the court set a fresh date. The development was confirmed by Rukonuzzaman, a sub-inspector of the prosecution department.
How the reserve money was stolen
The incident took place on 5 February 2016 and quickly emerged as one of the world’s most prominent cyber-enabled financial thefts. Hackers used the SWIFT international banking messaging system to send fraudulent payment instructions involving Bangladesh Bank’s account held with the Federal Reserve Bank of New York.
Through a series of unauthorised transfer requests, the perpetrators succeeded in moving a total of about US$81 million out of the account. The stolen funds were subsequently routed largely through the Philippines, where they were converted into the local currency, the peso, before being dispersed through several financial channels, including casinos.
The scale and sophistication of the theft raised serious questions about Bangladesh Bank’s internal controls, payment authorisation procedures and the security of its SWIFT-related operations. Investigators have also been examining whether information or assistance from individuals within Bangladesh was used to facilitate the transfers.
Case filed, investigation continues
About a month after the theft, on 15 March 2016, Zubayer Bin Huda, then joint director of Bangladesh Bank’s Accounts and Budgeting Department, filed a case with Motijheel Police Station under the Money Laundering Prevention Act. The CID was subsequently assigned responsibility for investigating the case.
The investigation was expected to identify those involved, trace the movement of the stolen funds and establish how the fraudulent transactions were executed. Yet despite repeated deadlines over the years, the final investigation report has not been submitted to the court.
Part of the money recovered
A substantial portion of the stolen money reached the Philippines and was converted into pesos. Some of the funds were subsequently channelled through three casinos and distributed among various individuals and entities.
Around US$15 million of the stolen funds was later recovered from the owner of a Philippine casino. The money was subsequently returned to Bangladesh by the Philippine government. However, approximately US$66.4 million remains unrecovered, leaving major questions over its whereabouts and the identities of those who ultimately benefited from the funds.
Legal efforts in New York
Bangladesh Bank also pursued recovery through the courts in the United States. In 2019, it filed a lawsuit in the United States District Court for the Southern District of New York in Manhattan against several parties linked to the theft, including Rizal Commercial Banking Corporation of the Philippines.
After a lengthy legal process, the court dismissed the case in April 2022, ruling that it lacked sufficient jurisdiction to hear the matter. Bangladesh Bank subsequently moved towards pursuing further legal action within the appropriate New York jurisdiction in an effort to recover the missing funds.
The international recovery efforts have continued alongside the criminal investigation in Bangladesh, making the completion of the CID report particularly significant.
Nearly a decade without a final report
Almost ten years after the reserve theft, the investigation has still not reached the stage of a final report before the court. The CID has sought extensions on numerous occasions, but repeated failure to meet the deadlines has resulted in successive postponements.
Sunday’s development means the deadline has now been pushed back for the 97th time. The court has fixed 14 September for the next submission.
The prolonged delay has raised renewed concerns about the pace of the investigation and the prospects of bringing the case to a decisive judicial stage. With a substantial portion of the stolen money still missing, the eventual report is expected to be crucial in establishing the full chain of events, identifying those responsible and clarifying the movement of the unrecovered funds.
Whether the CID will finally submit the long-awaited report on 14 September is now the immediate question facing the case.