Bangladesh Bank (BB) is going to install a SWIFT messaging system with new software from March 2017 to avert any unwanted incident in facilitating overseas payments.
Governor Fazle Kabir disclosed the development in response to a question while announcing the monetary policy for the January-June period of the current fiscal year at the central bank headquarters in Dhaka Sunday.
"We'll go with new SWIFT messaging system after completing all technical formalities," he said.
The new security system of facilitating overseas payments is going to be deployed after more than one year since a cyber-heist in February last year, when unknown hackers stole US$ 101 million from BB's account with the Federal Reserve Bank of New York.
Following the incident, the central bank was following three tiers of authentication systems - e-mail, SWIFT message and phone - while making any overseas payment through the US Fed, said the governor, who joined the BB after the incident.
The SWIFT (the Society for Worldwide Interbank Financial Telecommunica-tion) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardised and reliable environment.
The BB has already sought mutual legal assistant (MLA) from the Department of Justice (DOJ) and the Anti-Money Laundering Council (AMLC) of the Philippines through attorney general official to recover the stolen money from the Southeast Asian country.
Of the stolen money, Bangladesh Bank has so far brought back $35.25 million - $20 million from Sri Lanka shortly after the trans-national cyber-heist and $15.25 million in November last from Manila.
"We're now working on bringing back the remaining $65.75 million from the Philippines," Mr. Kabir noted. The overall recovery process remains sub judice in the Philippines courts.
The unknown hackers tried to steal nearly $1.0 billion from the BB account with the Fed, but succeeded in burgling out $81 million into four accounts at RCBC (Rizal Commercial Banking Corp) in Manila.
The cyber fraud took place on the night of February 04, 2016, sending a total of 35 transfer orders into the Fed - 30 were blocked, but four orders to the Philippines bank for a total of $81 million went through.
The rest $20 million transferred to a Sri Lankan non-government organisation was reversed because the hackers misspelled the name of the entity. Meanwhile, the governor expressed the hope that the flow of inward remittance will return to the upward trend from the present slowdown within the next two to three months.
He said the central bank was also trying to create employment opportunities across the country through encouraging the SMEs sector.
"To improve corporate governance, the BB is further strengthening its supervisory scrutiny, including by IT-based online supervision tools and placement of observers in the banks with governance challenges," Mr. Kabir said, replying to another query.
He said the high level of NPLs (non-performing loans) has weakened the transmission channel by widening the interest rate spread and reducing the downward flexibility of lending rates.
Mentioning different punitive actions taken against some managing directors of the banks, SK Sur Chowdhury, deputy governor of the BB, said the central bank was working to ensure discipline in the country's banking sector.
"We'll take stern actions against the errant banks if necessary," he warned.
He also said the central bank was providing different supports to encourage the country's overall export earnings. "We have already increased the allocation of the EDF (export development fund) scheme, aiming to facilitate the country's exporters and strengthening their business activities."
Among others, BB deputy governor SM Moniruzzaman, senior economic advisor Dr. Faisal Ahmed and economic advisor Akhtaruzzaman spoke on the occasion.
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