April 18, 2016
Bangko Sentral ng Pilipinas (BSP), Central Bank of the Philippines has revealed on Saturday penalizing any financial institution involved in laundering $81 million stolen. The fund has been stolen from Bangladesh Bank reserve kept with Federal Reserve Bank of New York in May.
Meanwhile, the Philippine central bank has also decided strengthening its regulatory oversight for non-banking financial institutions. Such institutions have allegedly been contributing to the growth of shadow banking in the Philippines.
Lack of transparency in deposit secrecy has made the local financial system attractive to bad money, cites the deputy governor. Admitting lapses in the existing anti-money laundering law (AML), he predicts that the regulators won’t waste the opportunity to reform concerned laws centering the crisis. Flaws in AML have partly led to the entry of $81 million in stolen money from Bangladesh Bank into Rizal Commercial Banking Corp. (RCBC) and casinos, reports Inquirer.net, whistleblower for the heist.