Rizal Commercial Banking Corporation Sues the Bank of Bangladesh for Defamation
Philippines bank serves visiting delegation from Dhaka with defamation suit for damages to its reputation caused by baseless allegations made by Bangladesh in the wake of 2016 cyberheist
NEW YORK, March 12, 2019 /PRNewswire/ -- Rizal Commercial Banking Corporation (RCBC), one of the largest banks in the Philippines, announced today it filed a lawsuit against the Bank of Bangladesh (Bangladesh Bank) in a Philippine civil court for defaming RCBC and its executives with baseless allegations of complicity in the $81 million cyber heist of Bangladesh's central bank in 2016.
The complaint was filed March 6 with the Regional Trial Court in Makati City, Manila. In the filing, RCBC says its "…reputation has come under the vicious and public attack by Bangladesh Bank since 2016. It is public knowledge that Bangladesh Bank has embarked on a massive ploy and scheme to extort money from plaintiff RCBC by resorting to public defamation, harassment and threats geared towards destroying RCBC's good name, reputation, and image, all with the intention of getting RCBC to pay Bangladesh Bank money that RCBC does not have in its custody or possession and which it does not owe to Bangladesh Bank."
The suit was served to Abu Hena Mohammad Razee Hasan, Deputy Governor and Head of Bangladesh Bank Financial Intelligence Unit (BFIU) and the other members of Bangladesh Bank delegation that arrived in the Philippines this week for meetings with banking officials. Bangladesh Bank sued RCBC last month in the U.S. District Court for the Southern District of New York.
Tai-Heng Cheng, RCBC's lead lawyer and a partner at the New York office of law firm Quinn Emanuel Urquhart & Sullivan, LLP said, "Bank of Bangladesh's claims are baseless and have harmed RCBC's reputation as one of the best banks in the Philippines. Bangladesh's suit is nothing more than a political stunt to try to shift blame from themselves to RCBC. The action taken today by RCBC finally puts the case in a court where -- at the very least -- the alleged crime took place."
RCBC's defamation suit references Bangladesh's failures to secure its network and disclose those failings on a timely basis. The complaint also refutes Bangladesh Bank's allegation that RCBC played a premeditated role in the cyber theft. "Bangladesh Bank had lost the US $81 Million the minute it left defendant Bangladesh Bank's account at the NY Fed and way before it had even reached the Philippines…. there is absolutely no act attributable to RCBC that caused the payment instructions to reach the NY Fed and the Correspondent Banks," the complaint says.
Thea Daep, partner at the Manila law firm of Villaraza & Angangco said, "RCBC had nothing to do with the theft of the funds and has cooperated fully with every investigation into the matter. We will prove in the Philippine court that Bangladesh's defamation is nothing more than a blatant attempt to shift the blame and cover up their own liability at RCBC's expense."
About RCBC:
RCBC is a leading financial services provider in the Philippines offering a wide range of banking and financial products and services. RCBC in engaged in all aspects of traditional banking, investment banking, microfinance, retail financing (auto, mortgage and housing loads, and credt cards). Remittance, leasing, foreign exchange, and stock brokering. RCBC is a member of the Yuchengo Group of Companies (YGC), of the oldest and largest conglomerates in South East Asia. For more information please visit https://www.rcbc.com
SOURCE Rizal Commercial Banking Corporation (RCBC)
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