PDIC to file criminal charges against AMA Rural Bank

The Philippine Deposit Insurance Corp. (PDIC) on Thursday said it is now preparing filing criminal charges against officials and employees of the closed AMA Rural Bank of Mandaluyong for its refusal to turn over its records.

In a statement, the PDIC said that as of November 19, 2019, only 16 accountable employees of the bank reported at the bank premises.

"When a bank is served a notice of closure, employment is terminated by operation of law but directors, officers and employees who hold assets, records, documents in trust or under administration have a duty to account
for and surrender these to the Receiver as well as provide information relating to the assets/ records," the statement read.

Earlier this month, the PDIC took over AMA after the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) ordered its closure on November 7.

"On takeover date, bank employees were enjoined to account for and turn over records and other accountabilities to the PDIC, but refused," the PIDC said last week.

"The PDIC gave the bank employees 24 hours from receipt of the written demand to report to the Receiver," it added.

Without the bank records, the PDIC said it would not be able to immediately pay depositors' claims for insured deposits.

According to the PDIC Charter or Republic Act 3591, the "refusal to turn over or destroying or tampering bank records by any director, officer, employee or agent of a bank are considered as criminal acts."

The law states that those found guilty of these acts are 'punishable with imprisonment of not less than six (6) years up to twelve (12) years or a fine of not more than P10 million, or both, at the discretion of the court.'

Moving forward, the PDIC said it is now looking at other possible measures to minimize the delay in payment of insurance claims.

"The PDIC assured the public that alternative plans are being pursued to minimize delay in the payment of deposit insurance to all insured depositors of AMA RB," it said.

"It has started meeting with depositors and borrowers to provide updates on PDIC’s operations at AMA RB," PDIC added. —LDF, GMA News