Ex-finance chief calls for closed-door hearings on money laundering scam

Former finance secretary Roberto de Ocampo on Thursday called on the Senate to hold its investigation on the $81 million money laundering scandal behind closed doors to avoid putting the nation's financial system in peril.

"I suggest that subsequent hearings be held behind closed doors since they will yield even more information and thus be more productive," said De Ocampo, now chairman of the Philippine Veterans Bank.

"Thus this investigation in aid of legislation could result in a positive outcome namely a strengthening of our AMLA (anti-money laundering act) law to include casinos in particular and the preservation of the globally recognized reputation of our banking system."

De Ocampo, the finance chief in the Ramos administration, warned of "unintended consequences" if the Senate continues to dig deeper into the controversy in front of a national audience.

"If we continue on this path, the gains we have had in the past will be at risk: our credit rating, foreign investments, economic growth and even our international banking and financial operations," he said.

This early, De Ocampo noted that Philippine banks’ remittance operations abroad experience tighter scrutiny from their partner foreign banks.

"That is bad news to our roughly 12 million OFWs (overseas Filipino workers). And that is only one example of problems we may be creating for ourselves over an isolated situation," he said.

Rizal Commercial Banking Corp. (RCBC), which received and transmitted the laundered funds from Bangladesh Bank, has closed its remittance operations in Italy.

But RCBC clarified that the closure had to do with the company's failure to meet on time "the computer systems capabilities required of it" by Banca d’Italia since 2014.

"The closure is not in any way related to the current issue on money laundering," RCBC global transaction banking head Manny Narciso said in a statement.

De Ocampo said he was optimistic that the banking system and RCBC "will be able to weather this storm and emerge even stronger with lessons learned from it." 

"Our banking system is strong and our bankers noted to be among the best in the region. Our BSP (Bangko Sentral ng Pilipinas) governor has even been recognized more than once as central bank governor of the year. Even the embattled RCBC is among our most reputable banks and has served the public well over many decades," he said. — APG, GMA News