HALISTER1: Tetangco Asks Lawmakers to Ease Bank Secrecy to Fight Laundering

Tetangco Asks Lawmakers to Ease Bank Secrecy to Fight Laundering

(Bloomberg) -- Bangko Sentral ng Pilipinas Governor Amando Tetangco wants lawmakers to ease law providing absolute bank deposit secrecy as part of country’s bid to combat money laundering, particularly after $81m theft of Bangladesh funds.
  • Bangko Sentral would have had “better chance to detect” and preempt laundering of Bangladesh reserves in Philippines had regulator been given wider authority over remittance and electronic money cos and if it had power to look into bank accounts, Tetangco tells Senate hearing in Manila.
  • NOTE: Philippines was thrown into the spotlight for what is described as one of the largest bank heists in modern history in Feb.; Bangladesh is seeking to recover what thieves stole after hacking into its account at U.S. Fed, routed funds to accounts at Rizal Bank before most of money disappeared through Philippine casinos Link
  • NOTE: Only Philippines and Lebanon have full bank secrecy, governor says and that central bank used to have authority to look into accounts
  • Easing or even repealing bank secrecy unlikely to cause bank runs and amendment proposed by central bank provides for strict confidentiality of any investigation, Tetangco says at hearing on proposed amendments to BSP charter and to bank secrecy
  • Bankers Association of the Philippines supports easing of secrecy law and amendments to Bangko Sentral act, its executive director Cesar Virtusio tells hearing
  • Bangko Sentral is separately working on regulation to tighten supervision over financial technology, electronic banking in line with Basel framework, Tetangco says
  • Philippines to establish national retail payments system that will provide infrastructure for digital finance transactions, Deputy Governor Nestor Espenilla says at hearing
  • NOTE: Philippines Boosts Defenses Against Cyber Attacks, Laundering Link
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BSNZ PM (Bangko Sentral ng Pilipinas)

People
Amando Tetangco (Bangko Sentral ng Pilipinas)
Cesar Virtusio (Bankers Association of The Philippines)
Nestor Espenilla (Bangko Sentral ng Pilipinas)

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