• $81M dirty pile puts OFW money at risk


    The laundering of $81 million stolen from the Bangladesh Central Bank wired to the Rizal Commercial Banking Corp. (RCBC) Jupiter Branch in Makati City (Metro Manila) endangers remittances of overseas Filipino workers worth at least P26 billion a year.

    Liberal Party (LP) standard-bearer Manuel “Mar” Roxas 2nd made the warning as the Senate resumed its investigation on Tuesday of the hacking of the $81 million from the Bangladesh Bank reserves at the Federal Reserve Bank of New York.

    “This is a gut issue. If we end up being perceived as a money-laundering center, the remittances sent by our OFWs will be at risk because remittances are not sent here in mere $30 to $100 dollars. Remittances are gathered by banks before being sent to our country in bulk,” Roxas, a former investment banker, pointed out.

    “Every anti-money laundering authority in the world is being watchful of our actions on this case, which could slow down the remittances’ flow. If this will be one of those things which will make headlines for one to two weeks only to be forgotten, then foreign authorities will take action, thinking that they can’t be sure that the money being sent and sourced from our country is clean,” he said.

    Roxas also raised the alarm on remittances made by exporters as well as foreign investors.

    “If there is a slowdown of remittances, exporters could end up making loans for their working capital. We can’t spur growth in our economy if the money wired to our country has to be checked by several foreign banks because they don’t trust our bank regulations,” he said.

    “That’s why I welcome the Senate investigation and if I will be lucky to be given a chance to be elected as President, I will move for stricter regulations to prevent this case from happening again,” Roxas added.


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    1. Roslee M. Formoso on

      Determine the privities of parties:
      If the hacker is in cahoots with RCBC? If yes, then it’s liable if not then it is not liable.

      Is RCBC in conspiracy with the recipient customer of the wire transfer in opening spurious accounts. If yes liable ; the Mgr is liable, if not then not liable.

      If the spurious accounts were opened as distribute recipient w/o Mgr intervention, RCBC not liable.

      Determine participation from the hacker to RCBC to Mgr to Bk customer wire transfer payee to supposed spurious accounts.

      Qt What the correct procedure to stop the wire transferred monies to customerspayee?
      Qt Distinguish personalities, is the consular officer Depositor? Though he is the aggrieved party is he address his problem correct, who is supposed to STOP?

    2. Roslee M. Formoso on

      Statutory Construction -Depositor , RCBC the representation of aggrieved , wrong he is not the depositor, FEB NY must stop RCBC from dispensing funds since the hacked stolen funds their account.
      Obligations and Contract By analogy, when offer was made thru newspaper and there was reply, revocation must be done newspaper, read Banco de Oro website.

      When the law require certain documents to be valid or to revoke that particular document must be complied otherwise such not binding effect. Since the account was wired hacked transfered by computer then reversal must be wired coupled with transmittal which could be made paper documnt.

      Negotiable Instrument Laws says, when presentment says date place it must be complied with, when denial it must also comply with the requirements of the laws. EVEN IF if the consulate goes to RCBC his presence is not the legal means to Stop, he is not the depositor too, it should be FedReBKofNY should stop.

    3. Roslee M. Formoso on

      The hacked funds wired to Rizal Commercial Banking Corp, initial the bank not at fault, the only instance that it’s at fault when the hacker was connivance with RCBC, BUT if the hackers were in cahoots with RCBC customer the Bk not at fault. STOP PAYMENT ORDER are absolute the bank to follow the order of the depositor since the transfer of funds via wire then reversals must also be wired. Compared to transfer of fund by checks/drafts. The website of Banco de Oro explains wire transfer. In my opinion, Federal Reserve Bk should stop RCBC from further dispensing money, since the money was their account.
      Rizal Commercial Banking Corporation must observe -sound banking practices, it must follow the order of its DEPOSITOR, the aggrieved , is not it’s depositor, therefore it should direct Federal Reserve Bk to wire STOP since it was already identified that the stolen funds are theirs.

    4. sanctions should be imposed on rcbc for proceeding with release of funds despite stop order and for opening fictitious accounts. whether it was done by its branch manager is besides the point because actions of the branch manager are still rcbc’s responsibility.

    5. Walter P. Komarnicki on

      the current lame duck government had 6 years to close this gaping loophole, yet did nothing except make some ineffectual promises because of this staggering financial scandal.
      just like the de-prioritizing of the FOI bill, by its acts of omission, voters will remember it.