Rizal Philippines
March 16, 2016
Hooray It is the date of "discovery of the Philippines by Magellan in 1521"
And today, the Philippines is well known to the world because of being the center of one of biggest heist in banking history almost a hundred million dollars of about P4 billion pesos. Name any hold up that could equal that amount. Many also remark that it is true that thieves and robbers use laptops and ipads to rob a bank - no more guns, acetylene torch, dynamites, drills and tunneling.
The latest heist involve a hacking of the Bangladesh Central Bank account at the Federal Bank of New York using the interbank messaging system known as SWIFT (the equivalent of cable before)
This was wired to RCBC in Jupiter branch allegedly to the account of William Go, erstwhile owner of S & R (but claims his signature at the bank was forged) and five others - Another $850 was to be transferred had the heist not been discovered. The money eventually found its way into the casinos and was made clean.Michael Cruz, Jessie Lagrosas, Alfred Vergara, Enrico Vasquez and Kam Sin Wong (Kim Wong).
It is to be noted that the said mentioned bank has become stricter. A relative who was to make a withdrawal in excess of the covered transaction was being asked a lot of question
It was mentioned in a Rappler article that Philippines has become a haven for money laundering because casinos are not made part of the AMLA law of 2001, and because of strict bank secrecy law.
The Senate committee investigating this fiasco claims it must amend the AMLA law.
There could be a fall out from this: ie that OFW remittance to the PHL could be made harder in case the intl governing body of Money Laundering, blacklists the Philippines
From Rappler - How the Bangladesh heist money found its way to the Phillipines
About RCBC why is involved and its Jupiter branch manager is being questioned.
There were allegations that: the procedures were not observed regarding the opening of the account especially the 5 John Does. It was alleged that the accounts were fictitious. One of the rules in AMLA guidelines is know the account, and know the purpose. There were allegations that De Guito opened the account for Go without his knowledge. De Guito promised to tell all. The RCBC president Lorenzo Tan has stepped down, as well as the Bangladesh Central Bank Head.
Bangladesh Central Bank Governor Atiur Rahman forced to resign over $81 million heist
The questions being raised are: Did De Guito act alone, or is the top management involved (as there are strict CB rules on money laundering)
From Gov website - BSP briefer on Money Laundering
Some salient points:
1. Money laundering - an act by which illegitimately acquired properties: money properties are made legitimate. This is usually done through the financial system: banks, insurance companies and stock exchanges.
What is money laundering?
Money laundering is an act or series or combination of acts whereby proceeds of an unlawful activity, whether in cash, property or other assets, are converted, concealed or disguised to make them appear to have originated from legitimate sources. One way of laundering money is through the financial system.
Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act of 2001 (AMLA), as amended, defined money laundering as a scheme whereby proceeds of an unlawful activity are transacted or attempted to be transacted, thereby making them appear to have originated from legitimate sources.
2. Covered transaction $10,000 or P500,000 in a single day Anything of that amount must be reported and recorded.
3. Basic guidelines for the bank:
1. Know your customers
9. What are the Customer Identification Requirements – KYC (Know Your Customer Rule)?
Covered institutions shall:
- Establish and record the true identity of their clients based on official documents.
- In case of individual clients, maintain a system of verifying the true identity of their clients.
- In case of corporate clients, require a system verifying their legal existence and organizational structure, as well as the authority and identification of all persons purporting to act in their behalf.
- Establish appropriate systems and methods based on internationally compliant standards and adequate internal controls for verifying and recording the true and full identify of their customers.
Thus the rule for example of having corporations update their corporate records documents is part of the bank's compliance with the AMLA law.
2. Illegitimate activities
Transactions, regardless of the amount involved, where the following circumstances exist:
a. there is no underlying legal or trade obligation, purpose or economic justification;
b.the client is not properly identified;
c. the amount involved is not commensurate with the business or financial capacity of the client;
d. taking into account all known circumstances, it may be perceived that the client’s
transaction is structured in order to avoid being the subject of reporting requirements under the Act;
e. any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the client’s past transactions with the covered institution;
f. the transaction is in any way related to an unlawful activity or offense under this Act that is about to be, is being or has been committed; or
g. any transaction that is similar or analogous to the foregoing.
Penalties: imprisonment up to maximum of 4 years and fine of P500,000. Too light?
Mga batikos/comments:
1. The penalties are too light
2. We need to amend the law and include casinos. But the criminals would be two or 3 steps ahead in case you amend the law.
3. The backlash would be on the OFW remittance.
Watch video!
Mga batikos/comments:
1. The penalties are too light
2. We need to amend the law and include casinos. But the criminals would be two or 3 steps ahead in case you amend the law.
3. The backlash would be on the OFW remittance.
Watch video!
