Monies processed through casinos
The World Bank Group has joined the call for reform of anti-money laundering laws in the Philippines following the investigation of $81 million in hacked funds, which were withdrawn from the Bangladesh Bank and made its way through the Philippines, some of it funneled through casinos in Manila.
“We really support the authorities’ calls for more legal reforms both in the AMLA and the bank secrecy law, because with those legal reforms it would be easier to do the AMLA client reviews and it would be easier to do the investigations,” said Rogier van der Brink, World Bank lead economist, according to the Asia Gaming Brief.
Manila’s Anti-Money Laundering Act, first introduced in 2001, does not cover gaming halls, van der Brink pointed out. “Loopholes must be closed,” he told reporters, adding that the Philippines must “keep reforming it so that you are sure these untoward effects will not materialize.”
In March, Securities and Exchange Commission Chairwoman Teresita Herbosa warned that the country risks landing on into the Financial Task Force’s blacklist of countries at high risk for money laundering. “We have the international commitment to do so. Worldwide, casinos are already covered. Perhaps, we are one of the few countries which have not included casinos as covered persons,” Herbosa told the Manila Times.
CalvinAyre.com reports that a Rizal Commercial Banking Corp. branch in Manila, where the millions were deposited before spreading through the local casino industry, is prepared to repay some of the money if so ordered by the Philippine government, but it would not likely make good on the total amount. RCBC CEO Lorenzo Tan said if the company failed to exercise due diligence in the matter, he would “recommend to the board to set aside certain money” to compensate for the losses.
Meanwhile, junket operator Kam Sin Wong has returned almost $5.5 million in cash that two Chinese junket agents transferred to accounts at the Solaire Resort and Casino and the Midas Hotel casino; Wong has also offered to hand over nearly $10 million he says he received from one of the men as repayment of a personal loan. He says an additional $17 million remains in the hands of local remittance firm Philrem Services Inc.
Philrem President Salud Bautista has denied the accusations, but a senator called her credibility “very, very low” after she claimed a subpoenaed staff member was still too sick to appear in person at a recent inquiry. Adding to Philrem’s problems, reported CalvinAyre.com, evidence is mounting that Philrem is not registered with local tax authorities as a remittance agent.
Bloomberg News reports that investigators are searching for hackers who attempted to steal almost $1 billion from Bangladesh’s central bank in February. They issued at least 35 Bangladesh Bank SWIFT payment instructions to the Federal Reserve Bank of New York for $951 million. Of that, four payments totaling $81 million later cleared the Rizal Bank.
Rizal Bank received “confusing” stop-payment and freeze requests from the Bank of Bangladesh in February, said Macel Estavillo, the lender’s head of legal and regulatory affairs. The lender will “allocate whatever amount we are found liable” by any court, Estavillo said.
