IMF backs reforms in PH after Bangladesh Bank heist

By: 8 years ago

AFP FILE PHOTO

The International Monetary Fund said the unauthorized transfer of US$81 million from Bangladesh Bank to entities in the Philippines highlighted the need to tighten the Southeast Asian country’s anti-money laundering laws.

Chikahisa Sumi, head of the IMF mission to the Philippines, said there was also a need to ease the bank secrecy law in the country to be on par with international standards, the Philippine Star reported Sunday.

Hackers tried to steal $1 billion from the account of the central bank of Bangladesh at the Federal Reserve Bank of New York last February. Of the 35 transactions, 30 transactions were foiled.

However, a total of five transactions worth $81 million were consummated through fictitious accounts at the Jupiter branch of Rizal Commercial Banking Corporation or RCBC in Makati City allegedly facilitated by branch manager Maia Santos-Deguito and customer relations manager Angela Torres.

Both employees were dismissed by RCBC while Deguito, who dragged resigned president Lorenzo Tan into the scandal, is now facing several criminal cases filed by RCBC and the Anti-Money Laundering Council (AMLC) for violating the Anti-Money Laundering Act.

The AMLC has filed several cases against several personalities and Philrem Services of the Bautista family before the Department of Justice.

Both the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, and the Senate completed their respective investigations on the money laundering scandal.

The BSP has also revoked the licences of Philrem Services, Peso Remittance Express Inc, and Werquick Inc for various violations in connection with the $81 million bank heist.

BSP Governor Amando Tetangco Jr. said both the IMF and the central bank’s monetary board are one in pushing amendments to the anti-money laundering law to include casinos, real estate brokers and art dealers.

“That is actually a reiteration of what was discussed before — that we support the amendment of the anti-money laundering law, to include casinos as covered institutions under the AMLA.”

Tetangco said the Department of Finance had already forwarded to the Congress the proposed amendments to the AMLA and the Bank Deposit Secrecy Law for tax evasion purposes.