‘No evidence Wirecard fund entered Philippines’

MANILA, Philippines  — The Bangko Sentral ng Pilipinas (BSP) and the Anti-Money Laundering Council (AMLC) have insisted that none of the missing $2.1 billion funds of German financial technology leader Wirecard AG entered the Philippines, but vowed to punish any individual found culpable of wrongdoing.

In a joint statement, both bodies reiterated that the alleged missing funds did not enter the Philippine financial system as earlier pointed out by BSP Governor and AMLC chairman Benjamin Diokno.

“As has been previously stated, current available evidence shows that the money did not enter the Philippine banking system,” BSP and AMLC said in the statement.

Both BDO Unibank and Bank of the Philippine Islands have denied that Wirecard was a client and the certifications presented by the German firm’s auditor, Ernst & Young, were spurious and illegally issued by junior officers.

Banks are mandated to submit suspicious transaction reports (STRs) to the AMLC for transactions exceeding P500,000 as such amount triggers the filing of a covered transaction report.

“We have systems in place that send us red flags in case of huge/suspicious transactions,” the statement read.

Both BSP and AMLC swiftly launched a multi-pronged investigation into the matter last June to determine if illicit funds entered the country.

Investigation by the central bank’s Financial Supervision Sector focusing on determining a breach in any banking regulations is well underway, while AMLC is determining any violations of the Anti-Money Laundering Act of 2001, as amended.

“Strong financial oversight has always been one of the hallmarks of the Philippines’ economic success. Over the years, the BSP has instituted reforms that have promoted good corporate governance and effective risk management systems,” BSP and AMLC said.

These include strict regulations on the disqualification and watch listing of erring bank officers that prevent individuals found as unfit from becoming officers in all BSP-supervised entities.

“These measures will be used with their full force against any individual found culpable of wrongdoing,” the agencies said.

The AMLC has 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.

“We continue to emphasize the importance of well-established risk culture in supervised entities. 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,” BSP and AMLC said.

Both BSP and AMLC are working closely with the National Bureau of Investigation (NBI) on the Wirecard scandal and are open to coordination with concerned international authorities to hold unscrupulous individuals accountable.