RCBC: No plans to pay $81M to Bangladesh Bank

MANILA, Philippines – Rizal Commercial Banking Corp. (RCBC) is not shelling out a single centavo to pay the Bangladesh Bank over the $81 million cyber heist that happened in February.

Lawyer Thea Daep, external legal counsel of RCBC, said the bank is not liable to pay Bangladesh Bank for its funds at the New York Federal Reserve that were stolen by hackers.

“RCBC has no plans to pay Bangladesh Bank any amount,” Daep said.

RCBC was the recipient of the funds that went through three layers of highly protected financial institutions: the New York Federal Reserve, SWIFT and the three global banks that eventually made the remittance.

“RCBC is not the proximate cause of the theft. They have no case against us. Bangladesh Bank was the one who was negligent. We, therefore, urge Bangladesh Bank to be transparent to the Philippine government which has done so much to help them and show us who really stole from them,” she added.

According to Daep, Bangladesh Ambassador John Gomes has been unfairly using media to pressure the Philippine government and make it its own collection agent, and in the process, is creating an undue and unnecessary adverse public portrayal of RCBC and by extension, the local banking sector.

“Numerous reports quoting high Bangladeshi officials and the initial findings of Bangladesh Bank’s own investigation indicated the heist got help from Bangladesh Bank insiders. Shortly after, Bangladesh Bank decided to abort its investigation which raises a lot of questions, to say the least,” she said.

Daep challenged Bangladesh Bank to produce the results of its own investigation, even the initial ones, to help shed light on who the perpetrators were.

She said the results of the investigation of Bangladesh Bank would be critical in helping the global banking sector protect itself.

“This is the least Bangladesh Bank can do,” Daep said, adding Gomes has blamed everybody but itself for its loss.

Meanwhile, RCBC reported yesterday the bank’s group head of legal and regulatory affairs and corporate secretary Maria Cecilia Fernandez-Estavillo has tendered her resignation effective Dec. 31.

The bank informed the Philippine Stock Exchange (PSE) that Estavillo, who was a key figure during the cyber theft probe conducted by the Senate, is set “to pursue other endeavors.”

Lawyer George Gilbert dela Cuesta was appointed as deputy group head of legal and regulatory affairs with a rank of first senior vice president effective yesterday. He will head the group effective Jan. 1 next year.

Likewise, RCBC head of retail banking group Lizette Margaret Mary Racela also tendered her resignation effective Nov. 30 to pursue other endeavors. Jonathan Diokno is set to take over the position effective Jan. 16 next year.

Estavillo is the third high-ranking officials who resigned from the bank since the money laundering issue erupted. Other officials who resigned from the bank include president and CEO Lorenzo Tan as well as treasurer Raul Victor Tan.

Last Nov. 18, the Anti-Money Laundering Council (AMLC) sued the former treasurer and five other officers and employees of RCBC.

Aside from Tan charged before the Department of Justice (DOJ) for violating Republic Act 9160 or the Anti-Money Laundering Act of 2001 were national sales director Ismael Reyes, regional sales director Brigette Capiña, district sales director Nestor Pineda, customer service head Romualdo Agarrado and RCBC senior customer relations officer Angela Ruth Torres.

The former RCBC president and CEO was not included in the charge sheet.

The AMLC has already filed money laundering charges against RCBC Jupiter branch manager Maia Santos-Deguito and the four fictitious account holders last March 15 and against casino junket operators and agents Kim Wong and Weikang Xu last March 22.

Wong has turned over $15 million worth of funds abandoned by casino players to the Bangko Sentral ng Pilipinas (BSP). The amount has been returned to the Bangladesh Bank.

Furthermore, AMLC has also sued officers of Philrem include Michael and Salud Bautista as well as Anthony Pelejo.