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Bangko Sentral slaps P1-B fine on RCBC for stolen Bangladesh Bank fund
The Monetary Board, the Bangko Sentral ng Pilipinas's (BSP) policy-setting body, approved a P1-billion fine against Rizal Commercial Banking Corp. (RCBC) in relation to the $81 million of stolen funds belonging to the Bangladesh Bank.
"This is the largest amount ever approved as part of its supervisory enforcement actions on a BSP supervised financial institution (BSFI)," BSP said in a statement Friday
In a separate disclosure, RCBC said it will comply with the Monetary Board Resolution No. 1392 by paying the central bank for "non-compliance with banking laws and regulations in connection with the $81M Bangladesh Bank Cyber Heist."
"This amount shall be paid in two equal tranches over a one-year period," RCBC noted
The BSP said the "supervisory enforcement action" against RCBC affirms its commitment to ensure the stability of the country’s financial system through strong and effective regulation of BSFIs.
"While the payment involves a large amount, RCBC believes that this is part of increasing regulatory oversight and restrictions and we will comply with the MB Resolution,” RCBC President and CEO Gil A. Buenaventura said.
Against money laundering
“With this payment, RCBC affirms its continued viability and determination to fulfill its firm commitment against money laundering, terrorism and other transnational crimes to ensure the stability of the banking system,” Buenaventura added.
Buenaventura noted that RCBC has made provisions for the payment.
"Together with the payment of this amount, RCBC is instituting changes in its Anti-Money Laundering (AML) system and processes, making it among the most prepared in terms of thwarting money laundering attempts in the Philippines and the region," he said.
The BSP said it recognizes RCBC’s efforts in instituting changes to strengthen its Anti-Money Laundering and Counter-Terrorist Financing Risk Management System and governance culture.
Buenaventura noted that the P1-billion fine would not affect the operations of RCBC and that the bank's capital ratios would stay strong.
“We appreciate the efforts of the Bangko Sentral ng Pilipinas to keep the banking sector prepared and strong. We will continue to cooperate with BSP in this endeavor,” he said.
RCBC Jupiter branch
Philippine authorities discovered that RCBC was a conduit for the stolen funds from the Bangladesh Bank account at the Federal Reserve Bank of New York. The money was transferred to the country through fictitious accounts in the Jupiter branch.
The the money was then transferred to casinos and junket operators.
The money laundering scandal compelled RCBC President Lorenzo Tan and Treasurer Raul Victor Tan to resign after they were implicated by sacked Jupiter branch manager Maia Santos-Deguito in the money laundering scheme. The Tans were not related to each other by blood.
Deguito noted the bank officials were aware of the transactions involving the stolen money.
On Friday, a Bangladesh central bank team visiting Manila said it was close to recovering $15 million of the $81 million of stolen funds. — Ted Cordero/VDS, GMA News
