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tv   NEWS LIVE - 30  Al Jazeera  January 5, 2019 10:00am-10:34am +03

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against crime they blame on people of african descent a counter demonstration is being held by a group supporting multiculturalism police of war both sides they'll be out in force to keep the beach safe private data belonging to hundreds of german politicians including chancellor angela merkel has been published online the leaked information includes home addresses phone numbers and credit card details it's not clear whether the officials were targeted by a hack or a victims of an internal leak five teenage girls have died after a fire broke out in a room where they were playing an escape game in northern poland girls all age fifteen were celebrating a birthday police don't yet know what started the blaze those are the headlines we're back in half an hour one on one east is next. cultural history subscribe layer upon layer at times erase others
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rejuvenating and reinvent. through the transformative power of public are not unlike the collision of hip hop culture and indigenous tradition forms a community building project led by the godfather of graffiti. on a. it was a daring. tens of millions of dollars stolen from bangladesh's central bank via the federal reserve bank of new york and then laundered in the philippines the money and the thieves then vendor. and steve on this episode a one on one east we investigate one of the biggest bank robberies a modern times and ask how the cyber hackers got away with it.
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to cover the. i'm a. product of a not really. jack up the capital of bangladesh. but teeming chaotic city and one of the world's poorest. seventy million people live here a set of them surviving on less than two dollars a day. bangladesh has one of the world's fastest growing economies. it's a country on the up but one that could ill afford to lose more than eighty million dollars of taxpayers' money. bangladesh bank the country's central bank is it the heart of its economic system. it overlooks a. around about inductors financial district. high walls and tight security to stop anyone getting in who shouldn't be there but sometimes physical barriers aren't
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enough for this heist nobody broke in and nobody took anything away in crime was perpetrated electronically. on the evening of service day february the fourth twenty sixteen the start of the weekend in muslim bangladesh most of the central bank staff had gone home the building was secure but intruders were already inside. in the interim report experts commissioned by bangladesh bank said a malicious program was installed on the bank's computer systems where possibly delivered virus infected e-mail collected passwords and usernames and covered its own tracks. investigators say they found considerable evidence that the hackers used the bank's credentials to access swished international messaging system used
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to send money around the world the hackers then generated search the five requests to transfer funds from bangladesh banks account with the federal reserve bank of new york the orders came close to a billion dollars. most of the requests were blocked but ford did get through and as a result almost eighty one million dollars was sent to accounts at a bank called our c.p.c. thousands of miles away in the philippines i couldn't believe it. because nothing like that even a smaller thing like that never happened so i was dumb and act for a while. man was the governor of the bank when its systems were compromised and the money was stolen you know i'm not blaming swift i'm not. fip i'm not blaming bangladesh but and this was not strong enough to really
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we stand but end of it. all institutions touched by the highest have denied they were to fault for the losses they have however taken steps to improve security. in the. police headquarters in downtown dhaka detectives here are working with all sorts he's in other countries in what has become an international investigation they've yet to confirm how the hackers got into the system or we will fit all the data and helping us into helping us and we are trying to find out. about cancun theme. maybe some investigators are sifting through ten terabytes of data in the hunt for a smoking gun that might identify the culprits though no bank insiders have been charged over the heist police say they must fully investigate the possibility. that
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maybe a bank employee. yes. thank you dish bank denies that anyone on the inside was involved and also denies negligence the police have not charged anyone from bangladesh bank in relation to the heist. to find out more i contacted one of the private sector cyber security companies that have investigated the methods used by the hackers what were your thoughts when you heard that this central bank had been hacked me early indicators show that this they likely got into some sort of spearfishing basically sent an e-mail to someone and then that person basically clicked on that e-mail and had their computer system now they were going up. what's called the swift terminals these are the terminals or computers that are responsible for conducting large bank transfers between organizations or even countries it's basically their modifying
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the applications on the computer that has sort of been hijacked a number of those computers are actually inside the bank this is a case where this institution was compromised more so than anything swift specific . in bangladesh the investigation into who stole the eighty one million dollars continues but it's quite possible that the hackers may actually have never set foot in the country. missing millions was sent overseas and i'm following the money trail to the philippines where electronic wire transfer became cherish. i've come to manila it's one of the fastest growing cities in asia manila's business district has expanded substantially over the last decade but its banking sector operates under unusually strict secrecy little that includes the institution
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which helped turn the transfers from bangladesh into trash it was by sending money here that the thieves effectively made they get their way eighty one million dollars of bangladesh banks funds ended up in this local branch of a bank called aussie b.c. and they did it using bank accounts that had been opened months earlier using fake i.d.'s and since lane in active. because it said payment requests from bangladesh bank to the new york fed on thursday and by friday the money had hit accounts at c.b.c. in manila. it was then moved between an array of other accounts controlled by a remittance company called phil rem some of it was converted into philippine pesos over a period of ten days the money was transferred elektra honestly and in cash and channeled into manila's casino industry. the accounts here on jupiter street were a vital clue for investigators they were crucial for laundering the money and
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someone had set them up using false names and fake credentials the question is who . the philippine senate held an inquiry into the laundering of the proceeds of the heist. it heard that the accounts were opened by the manager of the r c b c jupiter street branch a woman called my a. good bill good with him. and i really doubt it's rude she says she opened the accounts for this man a manila casino owner and agent she'd known for several years called kim wong who also gave evidence at the inquiry. my degree cho declined to be interviewed for this program but she testified to the inquiry that she had actually met four people whose names were on the accounts she's been represented by a lawyer who has an unusual taste in our us mr wong vouch for their identities
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percent the documents. which showed their identities and requested her to open an account in her bribed on behalf of these five individuals. with the promise that. a substantial amount. would come in the would be stuck out one hasn't been formally charged over the heist but is subject to civil action he denied to get his version of events and denied knowing that the money was stolen while out cannot comment bake it on the commands bought up all my soap numpad us a bunch up in the uk indie cool i'm in a month long eighty one million dollars see my young big eight long side being the mum bunch comes some forty million. new
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for a cool k. mio. i'm on the pluggable. bank was fined close to twenty million dollars for failing to comply with banking regulations and its chief executive and president resigned the bank said it accepted the findings of the regulator and wants to move on the company's lawyer says meyer to quito was a rogue employee branch manager who says she was naive that she was a pawn in a much larger plan which she didn't clearly understand at the time i disagree with that she knows the banking system history of all the policies of the bank accounts she set it up she was obviously waiting for the funds to be credible and when it was. up there that like. getting this accounts out of the beneficiary
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of the other car. the senate report documented the timing of the payments many were made within minutes of each other. lawyers say that when funds were received on february the fifth she confirmed the legitimacy of the remittances with our c.b.c. head office and received e-mails confirming they were from valid sources a legal team say she didn't have all thorazine to unilaterally prevent transfers and their client was told there was no reason to hold the funds following an investigation by anti money laundering or forest the a m l c the philippine department of justice has recommended that meyer be charged with eight counts of money laundering her legal team is trying to quash the charges against her but if the case goes ahead she will plead not guilty. sears year was many a form of philippine senator who sat on the committee looking into the heist says
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he doesn't believe seven days of testimony uncovered the whole story we couldn't quite get her to explain everything because we did not give her witness protection program. when the money left. it was paid to accounts at the fil rember emittance company still room was run by michael and. day along with kim wong and the company that owns a casino called solaire are the subject of pending legal action by money laundering authorities to try to recover some of the stone money jim warren and solaris say they are complying with the authorities the protesters have not responded to our request for comment. one stumbling block for the senate inquiry was the unusually high level of privacy afforded to bank accounts the philippines along with switzerland and lebanon has one of the most secretive banking sectors in the world
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can wall bank account we couldn't get it. back account we couldn't get it why. they hit. back secrecy act it stopped us from getting the whole picture in the money because we couldn't get the the. bank accounts of anybody almost fifteen million dollars has been recovered according to the official philippine senate report some of it handed over by kim wong who denied knowing it was stolen the m.l.c. says phil rem still holds seventeen million dollars of the stolen money and this suing for its return the company denies it has the money almost fifty million dollars has been traced to casinos and gambling junket operators according to the m.l.c. investigation none of that sixty seven million has been recovered. the casinos were used for turning the electronic money transfers into hard cash there's been no
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inference they knew the phones were stolen. they weren't covered by money laundering laws at the time and weren't required to record large transactions. as many as committee the heist exposed serious flaws and they were flaws that were predictable. specially in two thousand and ten when when they were going to develop before because you know here when they did that. he. we updated our money laundering law because the going to be very bad for us. the senate inquiry made more than a dozen recommendations which included extending money laundering laws to casinos and making it easier to access information about bank accounts. new laws covering the casinos were passed in july twenty seventh teen and earlier that year the philippines appointed a new central bank governor who vowed to make it harder for dirty money to enter
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the financial system. says he found it hard to get politicians to act we have the strictest bank secrecy law in the world and they can't get any of my congressman and senators to amend the. new york city one of the world's biggest financial centers and home to one of its most important financial institutions. the federal reserve bank of new york all defect it's manhattan headquarters sit on top of five hundred and eight thousand gold and it handles around eight hundred billion dollars of payments every day. and spice reports on its activity which moves markets around the world when no one thinks of the federal reserve in terms of cyber house usually you think of you know economics you think of labor markets you think of models of the u.s.
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central banking economists are poring over. to try to decide what to do about interest rates it turns out of course that there's about three and a half trillion dollars of foreign funds being held at the new york fed and the fed is basically the account custodian for two hundred fifty foreign entities around the world and its customers included bangladesh's central bank and it was to the new york fed that the hackers sent thirty five messages requesting payments from the bangladesh bank account. things could have been a lot worse but for an extraordinary coincidence millions of dollars hundreds of millions were never transferred because the name jupiter in the address for the bank happens to match that of an oil tanker nothing to do with the heist but on the list of u.s. sanctions against iran as a result most of the transfer orders were flagged as suspicious and blocked by the feds. and there were other reasons the transfer requests could have aroused
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suspicion they were different to most payments made by bangladesh bank they would formatted properly and these were large payments to individuals rather than organizations. but largely because the requests appeared to be authentic aided by swift eighty one million dollars was sent. when i use my card in a foreign country for example or for a sudden large purchase it can trigger a simple fraud inquiry from my bank real time monitoring the technology is quite straightforward but in the case of the heist nothing like that happened at the fed the vast majority of the use payment requests that arrive on the doorstep of the new york fed are automatically executed you know they come to the swift network they have all the boxes ticked they're swift authenticated and so they
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automatically go out the door but fred stuff we're concerned enough about some of the payments to try to contact bangladesh bank at the end of sirs day they sent a message using swift and two more on friday but hackers had compromised bangladesh bank swift system and sabotaged a crucial printer in the dhaka office it wasn't until saturday that bangladesh bank staff realized what had happened and tried to contact the fed urgently could only use numbers they found on the internet lines that weren't oncet at the weekend on monday bangladesh bank finally got messages through to new york saying they'd been hacked.

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