Bangladesh Bank

Bangladesh Bank, operating as the central bank of Bangladesh, is responsible for the nation's monetary policy, currency issuance, and the management of its foreign exchange reserves. A core function involves maintaining accounts with international institutions, such as its account at the Federal Reserve Bank of New York, to facilitate global transactions and manage the country's sovereign wealth. The institution's role in the international financial system was starkly highlighted in February 2016 when its systems were compromised in a sophisticated cyberattack. Attackers breached the bank's security to steal legitimate credentials, which they then used to send dozens of fraudulent transfer requests via the SWIFT messaging system from the New York Fed account. This attempt sought to move nearly one billion US dollars, with the criminals successfully transferring $81 million to entities in the Philippines before the scheme was partially interrupted.

The incident revealed critical vulnerabilities within the bank's cyber defenses and operational protocols. A transaction for $20 million destined for Sri Lanka was halted only because the attackers misspelled "foundation" as "fandation," prompting Deutsche Bank to query the instruction. The unusually high volume of requests and the use of private recipients also triggered flags from the Federal Reserve, aiding in the detection. Forensic analysis later indicated the intrusion originated from outside Bangladesh and that the perpetrators possessed detailed, pre-existing knowledge of the bank's internal systems, suggesting a prolonged espionage phase. While $81 million remained unrecovered, Bangladesh Bank engaged in collaborative efforts with Philippine anti-money laundering authorities and casino regulators to trace the illicit funds through complex laundering channels. This event underscored the bank's exposure to global financial crime networks and the persistent threat to central banking infrastructure, shaping its subsequent focus on cybersecurity resilience and international regulatory cooperation.