AMLC sues RCBC officers for money laundering

Six officers of the beleaguered Rizal Commercial Banking Corp. (RCBC) were slapped with criminal charges by the Anti-Money Laundering Council (AMLC) for their supposed involvement in laundering $81 million stolen from a Bangladesh Bank account at the Federal Reserve Bank of New York.

"Yes, a complaint was filed against RCBC officials last Friday," AMLC Executive Director Julia Bacay-Abad confirmed in a text message.

Following its investigation, the AMLC filed complaints before the Department of Justice on November 18 against former RCBC Treasurer Raul Victor Tan, National Sales Director for Retail Banking Ismael Reyes, Regional Sales Director for Retail Banking Brigitte Capiña, Direct Sales Director Nestor Pineda, Customer Service Head for Jupiter Business Center Romualdo Agarrado, and Senior Customer Relations Officer for Jupiter Business Center Angela Ruth Torres.

Tan resigned in April "out of decency and honor," according to RCBC Legal and Regulatory Affairs Head Maria Cecilia Fernandez-Estavillo.

On the other hand, Torres was sacked after she – along with Jupiter branch manager Maia Santos-Deguito – was found by RCBC to have been involved in the $81-million money laundering scheme.

The council alleged that its investigation has found all respondents liable for violating Section 4 (f) of the Anti-Money Laundering Act (AMLA), as amended.

"That pertains to money laundering committed by any person who 'performs or fails to perform any act as a result of which he facilitates the offense of money laundering," Abad said.

"Section 4 defines money laundering as a crime in which the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources. It is committed by the following:

"(a) Any person knowing that any monetary instrument or property represents, involves, or relates to, the proceeds of any unlawful activity, transacts or attempts to transact said monetary instrument or property.

"(b) Any person knowing that any monetary instrument or property involves the proceeds of any unlawful activity, performs or fails to perform any act as a result of which he facilitates the offense of money laundering referred to in paragraph (a) above.

"(c) Any person knowing that any monetary instrument or property is required under this Act to be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do so."

"All the elements of every money laundering offense under Section 4 of the AMLA, as amended, must be proved by evidence beyond reasonable doubt, including the element of knowledge that the monetary instrument or property represents, involves or relates to the proceeds of any unlawful activity," accortding to Rule 6.f of AMLA.

Early this year, $81 million was stolen from the account of the Bangladesh Bank with the US Federal Reserve Bank in New York and transferred to the RCBC branch on Jupiter Street in Makati City, an offense called cross-border money laundering scheme. That was in February. The money was then transferred to casinos and junket operators, mostly through remittance firm PhilRem Service Corp.

For its part, RCBC said has not yet seen a copy of the complaint.

"We have yet to receive a copy of the AMLC complaint/s but going by our independent internal investigation early this year, we believe that no head-office official was involved in the transaction that was initiated and carried out by key people in our Jupiter Makati branch," Gil A. Buenaventura, RCBC President and CEO, said in an emailed statement.

"We welcome the charges as an opportunity to conclusively prove that our executives acted properly and had no knowledge or participation in any money laundering. We are confident that the cases filed against these RCBC officers will be dismissed," it added.

The Monetary Board approved in August a P1-billion fine against RCBC, in relation to the stolen Bangladesh Bank funds.

“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 said. — VDS, GMA News