Despite scam involving Citibank official: Banking system remains stable - BSP

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has given its assurance that the country’s banking system remains sound and stable despite the discovery of what appears to be a scam involving a former officer of American banking giant Citibank NA who allegedly duped rich Chinese-Filipino clients in Binondo of hundreds of millions of pesos.

BSP Governor Amando M. Tetanco Jr. said the country’s banking system remains strong despite the controversy involving former Citibank Binondo branch assistant vice president for Citigold Wealth Management Francis Bryan Ang who has gone missing after allegedly carting away hundreds of millions of his clients’ money.

The bank’s Citigold Wealth Management group targets high-value clients with bank deposits of no less than P4 million and most of the customers are wealthy Chinese-Filipinos.

“This is an isolated case. The banking system and the business of wealth management remain sound,” Tetangco stressed.

He said Citibank is now looking into the matter and has assured the clients that their investments would be reimbursed.

“The bank has taken action. An investigation is ongoing and the bank has adopted measures to prevent a recurrence. The bank has reportedly indicated it will reimburse in full all who had been directly affected by the alleged fraud,” Tetangco added.

Latest data from the BSP showed that the country’s banking system remained adequately capitalized with an average capital adequacy ratio (CAR) of 14.8 percent on a solo basis and 15.8 percent on a consolidated basis as of end-December. The industry’s CAR continues to exceed both the statutory level set by the BSP at 10 percent and the international standard of eight percent.

The banking industry’s CAR, according to the BSP, is higher than Thailand’s 15.7 percent, Malaysia’s 15 percent, and Korea’s 14.6 percent. Indonesia has the highest CAR In the region with 19.2 percent.

The former banker’s father, Manila 3rd district councilor Bernie Ang, denied the allegations and said his son is not in hiding and is ready to face any investigation.

“How could he be wanted when there is yet to be a preliminary investigation and no arrest warrant has been issued against him?” the councilor earlier asked reporters.

The elder Ang said his son “is a powder keg ready to explode anytime kaya inunahan siya (so they jumped the gun on him).”                           

Before his son was accused of duping rich bank clients, Ang said Francis made known to his superiors his disappointment over some alleged bank “anomalies” and threatened to expose the same before the media if nothing is done about it.                                                

BSP Deputy Governor Nestor Espenilla Jr. said regulators would hear the side of the former Citibanker as well as that of bank officials.

“Perhaps we should first listen to what he has to say and determine if there’s any basis to it. We will also want to hear the bank’s side. There are established process for dealing with this,” Espenilla added.  

Citibank said in a statement that it is “investigating certain questionable transactions initiated by an employee whose employment has since been terminated. We have filed criminal and civil cases against him, supported by his own admissions and very strong documentary evidence.” 

According to the statement, the bank has “identified a small number of clients who were impacted and they are reviewing these accounts.”

The bank added that the councilor’s statements that came out in another broadsheet about the alleged “persecution” of his son and the “exposé” Francis Bryan Ang supposedly provided to Citibank management were totally false. 

“The only information Francis Bryan Ang provided to management was to admit to his own wrongdoings, which he disclosed voluntarily in writing and under oath, once he was confronted with the evidence. We are working closely with local authorities and we are confident that (Francis Bryan Ang’s) admissions, together with other evidence that has been uncovered, will clearly show that he has defrauded clients who trusted him,” the bank said.