TG Guingona thumbs down executive session in $81-M money laundering probe

Sen. TG Guingona on Tuesday thumbed down a request for an executive session in connection with the Senate probe on the controversy involving an $81-million money laundering scheme.

At the start of the investigation by the Senate Blue Ribbon Committee, Guingona, who heads the committee, said "[t]here has been a request to hold an executive session over this issue because of the bank secrecy law."

Guingona did not say who made the request, but said he "cannot agree to an executive session because subject funds belong to the Bangladesh government which did not invoke confidentiality."

Officials in Bangladesh were in the gallery to observe the proceedings at the Senate.

"The bank secrecy law does not apply in this case," Guingona said, noting that the Bangladesh Central Bank is in fact requesting for assistance for the return of the stolen funds.

Some $81 million have been taken from the account of the Bangladesh Bank in the US Federal Bank of New York and allegedly transmitted to the RCBC branch on Jupiter Street where it was withdrawn by five bank account holders.

In his opening statement, Guingona underscored the need for a legislative inquiry to know the truth behind the issue.

He also warned that money laundering issue could have repercussions on the country's remittances, credit rating and economy.

Earlier Tuesday, Guingona said in a radio dzBB interview that there is a need to strengthen the Anti-Money Laundering Act of 2001.

He said casinos should be included in mandatory searches and investigations in line with the pursuit of illicit funds following reports that the money taken from the Bangladesh Bank also found its way in casinos. — with Virgil Lopez/KBK/VS/NB, GMA News