Philippines
March 29, 2016
The half day hearing of the Senate on RCBC money laundering gave us lot of education on laws, management and internal controls, casino, the minds of criminals, scam, how to iwas pusoy (put blame on others) and insight on how the senior officer of the country think.
1. Sen. Serg Osmena's questioning of RCBC prexy.
The RCBC prexy said it is a correct balance of speed of transaction/ and control that must be managed in a bank to serve the millions of transaction that take place every second. The good senator that despite the size of the transaction, the RCBC prexy seemed not to have known that something was happening that he should taken action on. Mr. Tan, passed on the responsibility to sub alterns and the system which failed.
Comment:
Iwas pusoy ang sagot. He can not escape that responsibility. Perhaps the IT computer system, or the reporting system in their bank has gaps to comply with the AMLA law. I would like to think that the failure on the part of the bank to implement the stop order or comply with request of CB of Bangladesh to verify the beneficiary of the transfers make RCBC liable civilly for the $81 million dollars return to Bangladesh.
2. Revelation of Kam Sin Wong, a junket operator other wise known as Kim Wong
He promised he would tell all that he know. He made introduction that NBI agents, swooped on his house, bearing a wrong search warrant, and there was a supposed box delivery from RCBC through LBC which his maid refused to receive. He wish there would be less harassment so that he could cooperate with the authorities.
His story:
1. Maia (or Ms. Deguito, the RCBC Jupiter branch manager) solicited his account at the Midas Casino.sometime in May 2015 There were four of RCBC employees, and 3 were left behind. She, and another junket operator, (Gao Shushua from Beijing - Wong initially said this name was to be put on sealed envelope to be opened by the Senate. Sen Enrile insisted that he reveal the name.) were in his office/room. The junket operator was thinking of putting up a corporation. So they needed five persons. So they would open an account, and Gao wanted a dollar account. Wong said Maia promised she would take care of everything. Later she asked for the $500 each initial deposit for each account. For this, that Maia took care of everything meant that Maia was the one responsible for opening of fictitious account and orchestrating the deal (Take note.
2. In February, there was another meeting with Ding Zhizhe who is from Macau who said they would invest in Casino in the Philippines, because they will close the Macau operations. This matches the information that Macau casino/game operations are languishing because the high rollers can no longer game freely in Macau because of its proximity to China. Chinese top leaders are cracking down on corrupt officials who spend freely in casinos.
On Feb 5, 2016, the junket operator asked Wong several times during the day if the money came in yet. And Wong called up Maia. Maia daw ay nakulitan. Then Maia called him up at 6 pm saying the money started coming in $6m, then $25, $10 and then finally $20 million for a total of $81 million
Wong informed Solaire na may ipapadalang cash.; which was executed. P80 million brought by Maia's staff and P20 million brought by Maia herself (jives with story of Romualdo Agragado)
These were deposited at the junket account at Solaire. Wong had picture of the cash being deposited at the Solaire cashier; And picture of SUV of Maia leaving the Solaire premises.
3. Several other cash deliveries this time taken from Philrem Con Con Bautista:
Feb 9 - P100 million plus $3 million
Feb 10 - P100 million plus $2 million
Feb 14 P100 million
Total deliveries made by him using Philrem: P300 million plus $5 million
There was $4.6 million at the junket account still intact (which he promised he will cause the return to Bangladesh Bank) He promised that to recover the money from Gao, he was willing to pay the P450 million gambling debt to him by Gao. and will sell his properties if need be
Comment:
All the while, he was putting the blame on Maia, which from this observation was just a pawn, a conduit for this sophisticated byzantine laundering operations. But Wong knew all the parties: Deguito (the bank), the junket operator, and Philrem (whom he knows well)
He claims that $17 million is still unaccounted for and is with Philrem (denied by Philrem later on)
Wong was less than forthcoming when asked where he knew about Con Con, or Deguito. Causal meeting at Jason Go car repair shop/ Who referred that Philrem be used.
3. Sen Enriles position on bank secrecy law and investigation of the "fictitious accounts"
Sen Enrile objected to the examination of the alleged fictitious account because as a legislative body, they can not rule that an account is now exempt from bank secrecy law. He wants the court to decide that the account is fictitious, has been used illegally and therefore now exempt from bank secrecy law.. Sens Guingona and Pimentel assert that fictitious accounts are not subject to bank secrecy law, being non existent.. This technicality can slow down the process of finding the truth
From CB Circular 706
§ X807.5. Exemption from Bank Secrecy Laws - When reporting covered or suspicious transactions to the AMLC, covered institutions and their officers and employees shall not be deemed to have violated Republic Act No. 8791 and other similar laws, but are prohibited from communicating, directly or indirectly, in any manner or by any means to any person, the fact that a covered or suspicious transactions report was made, the contents thereof, or any other information in relation thereto. In case of violation thereof, the concerned officer and employee of the covered institution shall be criminally liable in accordance with the provisions of the AMLA, as amended.
§ X807.5. Exemption from Bank Secrecy Laws - When reporting covered or suspicious transactions to the AMLC, covered institutions and their officers and employees shall not be deemed to have violated Republic Act No. 8791 and other similar laws, but are prohibited from communicating, directly or indirectly, in any manner or by any means to any person, the fact that a covered or suspicious transactions report was made, the contents thereof, or any other information in relation thereto. In case of violation thereof, the concerned officer and employee of the covered institution shall be criminally liable in accordance with the provisions of the AMLA, as amended.
I think the bank secrecy law should be amended to reflect such order from CB; the wording here is tentative and unsure: "shall not be deemed"
Comment:
The good senator has a good point there. However, we are not sure of his motive since he objected to inclusions of casinos in AML
4. Mr Manalastas and Atty Benny Tan of Pagcor.
The CCTV footage are erased every 14 days and thus the CCTV of the transactions in question are no longer exist.
The casino visitors gamblers are monitored by Casino information management system, the winnings etc behavior of a casino player. This helps the casino and the junket operators monitor their revenues.
When a junket operator comes in, in exchange for cash, he issued dead chips (non negotiable chips) which must be used to play/game. His winnings are paid with cash chips which he can encash on the way out
Comment:
Great education on the ins and out of casino. Kim Wong said that the junket agents earn on commission, no risk; but junket operator spend on hotels and plane fare of the junket joiners. When the player loses, the junket operator also loses, but when the player wins, the operator gets 47.2 of the winnings. Take note that in this operation, the junket operator lets the player lose his dead chips who could from the junket or elsewhere and brings out the money winning on cash chips . Thus the lost money cant be recovered. Clean/laundered talaga. Hindi po ba.
5. Sen Bam Aquino
He laments that everybody is talking how this happened. No one is talking how to recover the money that was stolen from Bangladesh
Comment:
It is for DOJ or the prosecutors to do that. The Senate inquiry is no the omnibus solution to the scandal. It merely wants to get information on the loopholes and weakness of the law. to prevent the repeat of the scandal.
6. Sen Sonny Angara
He asked about the BIR, transaction tax of Philrem, etc. why the syndicate used Philrem for the transaction.
Comment:
Ms. Bautista of Philrem who is just another of the pawn in this operation will surely not know why. The layering as it was mentioned, simply puts the launderer farther away from money source (to avoid connection) and to confuse the authorities. Simple withdrawal from Jupiter branch would raise red flags and ring bells at RCBC head office. As it was, the encashment/conversion at Unimart Branch hid camouflaged/confised the bosses on what was going on.
Kim Wong claims that $17 milion is still with Philrem which Bautista denies (Discrepancy of Wongs testimony on missing $17 million.. Could it be the P450 million owned to him by Goa. or the remittance to Eastern Hawaiian leisure)
It was a tiring day and everybody now wonders who is telling the truth? Who is?
RCBC
Deguito,
Kim Wong?
From Rappler - who is who in the RCBC money laundering case? Talaga bang walang kinalaman, hindi inimvite ni Tan si Deguito join RCBC?
Abangan ang susunod na kabnata.
