The Bangko Sentral ng Pilipinas (BSP) is ready to work with the German government in bringing the issue of the missing $2.1 billion Wirecard money to rest, according to BSP Governor Benjamin E. Diokno.
“The BSP and AMLC (Anti Money Laundering Council) are open and eager to collaborate with international agencies and German regulators who are dealing with the matter to hold the fraudsters accountable and to give justice to those who have been harmed by their acts,” said Diokno during the Question and Answer portion of the pre-SONA Economic Team online press briefing on Wednesday.
Diokno has assured the local markets previously that the two local banks tagged in the Wirecard scandal
– BDO Unibank Inc. (BDO) and Bank of the Philippine Islands (BPI) – have nothing to do with the German e-payment group and both banks have denied that Wirecard is a client, early on.
Initial investigations from the BSP also show that not a cent of the $2.1 billion alleged Wirecard money entered the country, via these two banks.
While awaiting any moves from German regulators, Diokno said they are closely monitoring and surveilling the banking sector in the wake of the Wirecard alleged transactions.
“Apart from conducting investigations, we have reminded the banks to strengthen their ‘Know Your Customer’ protocols and be very strict in knowing their clients,” said Diokno.
“Banks are also reminded of their obligation to know your employees, their respective compliance officers, and internal audit functions should be able to assess their employees’ behaviors and financial transactions with the same manner that they assess and monitor their customers,” he added.
The Bankers Association of the Philippines (BAP) has assured that the industry has “very strict” rules when issuing bank-related documents, despite that “individuals may try to forge or falsify these documents, but their authenticity can be readily ascertained through careful scrutiny or verification by the appropriate institutions.”
BAP members is working with the BSP, it said, to “improve our processes and our member banks are regularly and proactively strengthening security checks and systems to ensure integrity at every level.”
Besides the BSP and AMLC, law enforcement agencies such as the National Bureau of Investigation are also investigating Wirecard claims.
Diokno said last week that the Wirecard brouhaha is not harming the reputational risk of local banks. He said the issue “does not pose significant reputational impact on the Philippines (and we) do not see a negative impact on investor optimism or shareholder confidence.”