Bangladesh urges Senate to focus probe on RCBC

MANILA, Philippines - The government of Bangladesh is hoping the resumption of the hearing of the Senate Blue Ribbon Committee would focus on the involvement of Rizal Commercial Banking Corp. (RCBC) in the $81 million bank heist.

Bangladesh ambassador to the Philippines John Gomes said his government would like to know more about the participation of RCBC in the money laundering scandal.

“In the previous hearings we did not get the complete results about the role of RCBC because they were invoking the bank secrecy law and all,” Gomes said.

Furthermore, he added the previous hearings conducted by former senators focused on dismissed RCBC Jupiter branch bank manager Maia Santos-Deguito and Philrem Services.

“Everything was targeted toward Deguito. I feel there are other responsible persons RCBC is one, Philrem is another one, and William Go’s involvement,” he added.

Gomes said Philrem and the Bautista couple have to account for the $17.2 million as casino junket operator Kim Wong has already turned over $15 million to the Anti Money Laundering Council (AMLC) for safekeeping.

“It is the Bautistas who will know where the money is. There are a lot of questions that Philrem has to answer for. That is why we want another Senate hearing is for Philrem to answer for those $17.2 million,” he said.

He said the Bangladesh government would write a letter to Senate President Aquilino “Koko” Pimentel III to seek the reopening of the investigation on the funds stolen by hackers from its account with the Federal Reserve Bank of New York in February.

“I attended the Senate Blue Ribbon committee hearings and I know what are the issues that need to be discussed further. What I feel is that this chapter between Bangladesh and the Philippines, the earlier it is settled will be better for the rest of us,” he said.

The scandal has led to the resignation of former RCBC president and CEO Lorenzo Tan and treasurer Raul Tan. RCBC, based on its internal investigation, cleared both officials of any role in the $81 million cyber theft.

The listed bank also dismissed Deguito and customer relations officer Angela Torres for facilitating the transaction involving the funds stolen from the Bangladesh Bank.

Gomes said Bangladesh believes RCBC was “definitely responsible” for the disappearance of the money having cleared the transaction despite the “urgent stop payment” orders from the Federal Reserve Bank of New York.

“If they put the red flag on, then none of this would have happened. I still believe RCBC has to answer. The resignation of the RCBC president, the resignation of the chief of treasury, obviously these are indicating that they are definitely responsible,” he added.

Last Friday, the Bangko Sentral ng Pilipinas (BSP) slapped a record P1 billion fine against RCBC for non-compliance with banking laws and regulations in connection with the money laundering scandal.

RCBC president and CEO Gil Buenaventura said the bank would pay the fine in two equal tranches over a one-year period.

Buenaventura said RCBC already has provisions for the payment of the fine. The first P500 million would be paid upon approval by the central bank’s Monetary Board and the balance of P500 million one year after.

Hackers tried to steal close to $1 billion from the Bangladesh Bank account with the US Fed last February. The US bank was able to stop 30 of the 35 transactions.