The Bangko Sentral ng Pilipinas and the Anti-Money Laundering Council warned that strict rules will be applied in “full force” against any individual found guilty of wrongdoing in connection with the controversial Wirecard issue that stirred the domestic financial system recently.
“Over the years, the BSP has instituted reforms that have promoted good corporate governance and effective risk management systems. These include strict regulations on the disqualification and watch-listing of erring bank officers. These regulations prevent individuals found as unfit from becoming officers in all BSP-supervised entities,” the BSP and AMLC said in a joint statement Friday.
“These measures will be used with their full force against any individual found culpable of wrongdoing,” they said.
They said in response to the Wirecard fraud, all relevant institutions in the country were mobilized to investigate, announce relevant findings and ensure that clear and credible information was made available to the public.
The BSP and the AMLC swiftly launched a multi-pronged investigation into the matter to determine if illicit funds entered the country. Investigation by the BSP’s Financial Supervision Sector, which focuses on determining whether any banking regulations were breached, is well underway.
AMLC, the Philippines’ financial intelligence unit that is chaired by the BSP governor, conducted a financial investigation into the matter to determine any violations of the Anti-Money Laundering Act of 2001, as amended.
They said current available evidence showed that the money did not enter the Philippine banking system. They said the systems are in place that send red flags in case of huge/suspicious transactions.
The two institutions said strong financial oversight is one of the hallmarks of the Philippines’ economic success.
AMLC also issued regulations in relation to the identification of the beneficial owner of accounts, as well as guidelines for designated non-financial businesses and professions, which cover the so-called gatekeepers, such as lawyers and accountants, requiring them to comply with their obligations under the AMLA, as amended, on know-your-customer requirements, recordkeeping, and transaction-reporting.
“It is because of a sound regulatory environment and proactive industry response that the Philippine banking system has remained strong and stable, playing a significant role in fueling economic growth over the years,” they said.
The BSP and AMLC said they were working closely with the National Bureau of Investigation on the matter and were open to coordination with concerned international authorities to hold unscrupulous individuals accountable.
“Committed to full transparency on the matter, the BSP and the AMLC will be sharing updates on the issue as investigations progress,” they said.
BSP Governor Benjamin Diokno assured the continued safety and soundness of the banking system amid uncertainties and challenges in the current business environment. He said the recent issues faced by the banking system, including the Wirecard controversy amid the pandemic, highlighted the banking industry’s resilience.
