NY Supreme Court rules in favour of BB in $81m theft case against RCBC

The New York State Supreme Court, First Appellate Department, recently ruled in favour of Bangladesh Bank (BB), advancing the bank's quest for justice in the high-profile case involving the misappropriation of $81 million, according to a press release from the bank.

The ruling, issued on 29 February, is a significant legal victory that brings Bangladesh Bank one step closer to recovering the stolen funds from the people responsible for taking them.

The stolen funds were traced to the Federal Reserve Bank of New York, and the court's decision affirms New York as the jurisdiction for legal proceedings against Rizal Commercial Banking Corporation (RCBC), its executives Lorenzo Tan and Raul Victor B. Tan, and Kam Sin (Kim) Wong, the press release said.

The First Department upheld the trial court's decision, allowing Bangladesh Bank to pursue legal actions against RCBC and its senior executives in New York, it added.

Bangladesh Bank expressed satisfaction with the ruling, stating that it brings the institution one step closer to recovering the stolen funds and holding those responsible accountable. The bank is considering its next steps, including potential appeals or responses to any appeals by the remaining RCBC defendants and Kim Wong.

According to the BB press release, the key aspects of the ruling include holding the defendants accountable for their involvement in the fraud committed against Bangladesh Bank, as well as acknowledging the bank's claims regarding the creation of fictitious accounts, money laundering, and the theft of funds.

The court ruled that RCBC, Lorenzo Tan, Raul Tan, and Kim Wong can be held liable for their roles in allowing the stolen funds to be laundered through foreign exchanges and the RCBC Treasury. The decision emphasised the involvement of these entities in the theft, including the creation of fictitious accounts and the use of New York correspondent accounts for the fraudulent transactions, the release added.