RCBC investigating $81-M money laundering claim

Rizal Commercial Banking Corp. (RCBC) on Wednesday said it is looking into details of an $81 million supposedly deposited in its Jupiter branch as part of a money laundering scheme.

The money was supposedly part of a scheme by Chinese hackers to launder money from the Bangladesh central bank's deposits in the Federal Reserve Bank of New York.

"RCBC is investigating the deposit of $81 million in its Jupiter branch and the subsequent transactions thereon," Cesar E.A Virata, RCBC Corporate vice chairman, said in a statement via text message.

The RCBC branch on Jupiter Street in Makati was reported to have been the storing ground for some $81 million that the hackers laundered from the Bangladesh Central Bank's account in the US.

Top officials of the bank were aware of the transactions, which was not taken lightly by bank President and CEO Lorenzo Tan.

"I condemn as malicious and actionable insinuations that the top management of the bank knew of and tolerated alleged money laundering activities in one branch," Tan said in a separate text message.

"RCBC and its principal shareholders – the Yuchencgo family, Cathay Life (the largest life insurance company in Taiwan), and the IFC (International Finance Corp.) – are committed to comply with all banking laws and regulations, in particular those on money laundering," the statement read.

IFC is the private sector investment arm of the World Bank.

RCBC noted it has "... submitted the required reports to the AMLC (Anti-Money Laundering Council) and will cooperate with government regulators."

PAGCOR eyes casinos involved

Texts and calls by GMA News Online to the council were left unanswered. Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. chairs the AMLC, with the Insurance Commission and Securities and Exchange Commission as members.

The money from the Bangladesh central bank was supposedly channeled from RCBC into a foreign exchange dealer and transferred to three casinos – Solaire Resort and Casino, City of Dreams, and Midas. It was then converted back into cash and sent out to various accounts in Hong Kong.

The Philippine Amusement and Gaming Corp. (PAGCOR) said it is looking into the transactions of the three casinos.

"PAGCOR is currently in the process of examining the February cash transaction records of the three casinos," Francis Hernando said in a text message to GMA News Online. He declined to give further details.

Hernando is the vice president of PAGCOR's Department of Gaming and Licensing Development.

The Senate blue ribbon committee has also set a hearing on the matter next week.

"Hearing will be conducted on Tuesday, March 15 at 10:00 a.m.," Senator Sergio Osmeña III said in a separate text message. He did not elaborate.

Osmeña is chairman of the Senate committee on banks and financial institutions and vice chairman of blue ribbon panel.

The government of Bangladesh said it plans to sue the Federal Reserve Bank of New York. – VDS, GMA News