BSP: Wirecard scammers using BDO, BPI for cover-up

MANILA, Philippines — Perpetrators of a scandal involving Germany-based digital financial technology leader Wirecard AG are only using the names of two of the country’s largest lenders to cover their tracks as none of the missing $2.1 billion entered the Philippine financial system, according to the Bangko Sentral ng Pilipinas.

BSP Governor Benjamin Diokno said the international financial scandal just used the names of BDO Unibank Inc. and Bank of the Philippine Islands (BPI).

“The initial report is that no money entered the Philippines and that there is no loss to both banks,” Diokno said.

Both BDO and BPI already clarified Wirecard was not a client nor did they have any business relationship with the German firm.

The country’s largest and third largest private banks already informed Wirecard’s external auditor Ernst & Young (EY) that the documents that attested to the presence of the supposed funds were “spurious.”

The BSP chief said the regulator is now conducting its own investigation as both banks reported the matter to the central bank immediately.

A central bank official said the case involving the missing funds of Wirecard is different from the $81 million cyber heist a few years ago wherein the funds stolen by hackers from the Bangladesh Bank entered the country by using a local bank as a conduit before the money were laundered in the casinos.

BDO has terminated the marketing officer after fabricating a bank certification in favor of EY Germany, while BPI also put on preventive suspension a junior officer for issuing a spurious certification.

BDO president and chief executive officer Nestor Tan said his bank was used and is not a party in the Wirecard scandal.

“Wirecard is not a client. The document claiming the existence of a Wirecard account with BDO is a falsified document and carries forged signatures of bank officers,” Tan said.

Likewise, BPI also said Wirecard is not a client.

“Their external editor presented to us a document that claimed that they are a client. We have determined that the document is spurious,” the spokesperson of BPI said.

The German firm has a presence in the country through Wirecard e-Money Philippines Inc. that has been granted an electronic money issuer license by the BSP. It is still in the process of establishing its local EMI business and has only one corporate client with 20 prepaid cards issued.

Diokno said the country’s banking system was in a strong with assets rising 9.3 percent to P18.7 trillion.

The BSP chief also said Philippine banks are well capitalized with a capital adequacy ratio (CAR) of 16 percent, well above the minimum thresholds set by the BSP at 10 percent and the Bank for international Settlements (BIS) at 8 percent.