Rcbc Money Laundering

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Far Eastern University

Institute of Accounts, Business, and Finance

CASE STUDY

RCBC Money Laundering Issue

Submitted by:

Maria C. Leyva

Submitted to:

Prof. Remigio Tiambeng

RSK VAL

TF 6:00-7:30 p.m.

18. March. 2016

Introduction

Key Problem & Issue

The money laundering issue in RCBC Jupiter Makati Branch worth $81 Million from Bangladesh Bank.

Thesis Statement

        To identify the real cause of transferring $81 million to RCBC Jupiter Makati Branch and to know who is behind on that circumstance if it is a hacker from the Philippines, the Bangladesh Bank, or

Background

Background Information

The incident happened on Saturday Night in Bangladesh Bank and Friday in the Afternoon in the Philippines. An $81 have been transferred in RCBC without approval of the Federal Reserve or FED because of lack of information and requirements. Furthermore, it was realized that the Bangladesh’s stolen funds were transmitted online to four private accounts at a branch of the RCBC.

 Below are the following news 1-2 days ago:

For Sen. Teofisto Guingona III, a "conspiracy" was evident in the alleged $81-million money laundering case hounding a Philippine bank. "You cannot just bring in, steal $80 million from the States, because this was the Bangladesh Central Bank account in New York, bring it to the Philippines, put it in fictitious accounts, transfer it to one account... transfer it to two banks, and hand deliver several hundred million pesos," Guingona said.

"That whole trail could not be done by one person. There was a conspiracy. It was well planned. It was so premeditated."

Guingona said, so far, there were "more questions than answers" after a Senate probe of the matter. Though he remained optimistic that the identity of the persons involved in the laundering case would be divulged.

Guingona lamented the delay of RCBC in honoring the stop payment requests, which arrived on February 8 (Monday). Since this was declared as a special non-working holiday in the Philippines due to the commemoration of the Chinese New Year, RCBC was able to honor the stop payments at night time the next day, February 9.

Guingona said if RCBC had been more prudent and honored the stop payments on the morning of February 9, the Philippines could have salvaged more than half of the $81 million alleged laundered funds.

Guingona said the issue was leaning both on the failure in the implementation of the country's existing laws and the lack of laws on anti-money laundering.

"As far as the banks are concerned, I think we already have enough laws. It's a either a failure of the system or human error or it's pre-meditated and there's a conspiracy," the lawmaker said.