AMLC steps into Wirecard probe

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) is ready to step into the probe of the $2.1 billion missing funds of German financial technology leader Wirecard AG, according to its executive director Mel Georgie Racela.

Racela said the AMLC is mandated to make sure that the Philippines is not used for laundering the proceeds of any unlawful act.

“Suffice it to say that the AMLC is prepared to receive and take action in respect of any request from its foreign counterparts for assistance in their anti-money laundering operations,” Racela said.

Two of the country’s largest private lenders – Sy-led BDO Unibank Inc. and Ayala-led Bank of the Philippine Islands (BPI) – have been dragged into the scandal after erring employees allegedly issued certifications that both banks have the missing $2.1 billion funds.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno said in a virtual press conference the BSP has enough control and operational risks to prevent fraud.

“On the part of the BSP, it has issued adequate policies to identify, mitigate measure, and control risk including operational risks, such as the Wirecard issue,” Diokno said.

Diokno, who also chairs the AMLC, said that the BSP is encouraging the banking industry to tighten their hiring process and know-your-client procedure.

Like any innovation, the BSP chief said the gains from increased digitalization of finance could always be weighed against what can go wrong.

“In this case cybersecurity is a collective responsibility from corporations maintaining security protocols, regulators having defined standards and expectations, technology providers continuously operating with public welfare in mind, and even individuals keeping controls over their passwords or identity details,” Diokno said.

Diokno reiterated the perpetrators of the fraud used two of the country’s biggest banks to make the cover-up more credible, but both BDO and BPI already mentioned that they have no transaction or working relations with Wirecard.

“We have actually made it very clear that no money entered the Philippines and there is no effect on the two banks. The central bank is actually doing its own investigation,” Diokno said.