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Philippine central bank fines Rizal Bank

  • Published at 01:56 am August 6th, 2016
  • Last updated at 10:14 pm August 6th, 2016
Philippine central bank fines Rizal Bank

The central bank said in a statement that it was the largest amount it has ever approved “as part of its supervisory enforcement actions” on a bank.

RCBC said separately that it would pay the fine over a one-year period, in two tranches of 500 million pesos each.

Unknown hackers tried to steal nearly $1 billion from the Bangladesh central bank’s account at the Federal Reserve Bank of New York between February 4 and February 5, and succeeded in transferring $81 million to four accounts at RCBC in Manila.

Sh-Jama

RCBC earlier yesterday challenged Bangladesh Bank to take it to court, telling Reuters that the “Philippine side has done its part” and that the transfers were made based on authenticated instructions over payments network SWIFT.

After the fine was announced, RCBC President and Chief Executive Officer Gil Buenaventura said in a statement: “With this payment, RCBC affirms its continued viability and determination to fulfill its firm commitment against money laundering, terrorism and other transnational crimes to ensure the stability of the banking system.”

Bangladeshi officials say the money was able to disappear into the casino industry because of systemic failures at RCBC, not just individual errors by some of its officers. A Bangladesh central bank team is currently in Manila to try and recover some of the lost money, but said they were close to getting back only $15 million. ($1 = 46.8900 Philippine pesos)