BSP won’t enforce money ban

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is not issuing an order to banks to implement the money ban, which the Commission on Elections (Comelec) has imposed to prevent vote buying.

In a statement late Tuesday, the BSP said it is “constrained” from enforcing Comelec Resolution 9688 since it would mean looking into specific bank accounts in violation of the Bank Secrecy Law.

While it supports the objective of having clean and honest elections, the BSP said limiting withdrawals “may not be the best way” to achieve such goal.

“Limiting cash withdrawal and check clearing beyond P100,000 may disrupt normal business and commercial transactions in the Philippines,” the BSP said.

Without an order from the BSP, bank officials, who also oppose the money ban, said they would continue to allow withdrawals and check encashments above the Comelec’s prescribed limit.

Lorenzo Tan, president of the Bankers Association of the Philippines, said the Comelec resolution may hamper bank transactions, especially those that operate on a daily cash basis such as public markets. BAP is the umbrella group of the country’s biggest banks.

“We will comply with the directives of our regulatory bodies, the BSP and SEC (Securities and Exchange Commission),” Tan said in a text message to reporters.

“We are exploring our legal options,” he added.

Suzanne Felix, executive director of the Chamber of Thrift Banks, said the money ban will be problematic for lenders who have to “exercise sound judgment” on all bank transactions.

“Of course, we understand where the Comelec is coming from and we support their objective behind this ruling, but there is really a need to review this so that legitimate and necessary bank transactions (can proceed),” she said.

Edward Leandro Garcia Jr., president of the Rural Bankers Association of the Philippines, said countryside lenders will await the BSP’s decision.

“We are one with Comelec in implementing all possible measures to ensure clean and honest midterm elections,” he added.

Comelec mulls recall

Comelec Chairman Sixto Brillantes Jr. said the poll body has noted the negative reactions to the cash ban, and is considering recalling or amending the rule.

But should the Comelec affirm the implementation of the resolution, Brillantes said the BSP, despite its objection, should comply with it.

Comelec spokesman James Jimenez urged critics of the money ban to formalize their complaints instead of raising their concerns in the media.

“It would help if they will show us or tell us how it can be better... We would very much welcome it if they would officially bring before us whatever they want to tell us,” Jimenez said.

President Aquino has consulted his Cabinet on the legality of the money ban.

The ban, which took effect yesterday and will be enforced until May 13, limits cash withdrawals in banks to only P100,000 and prohibits the possession, transport and carrying of more than P500,000 cash.

Deputy presidential spokesperson Abigail Valte said the President had discussed the matter with Justice Secretary Leila de Lima, Trade Secretary Gregory Domingo and Finance Secretary Cesar Purisima.

“Given the concerns that have been raised, not just by the BSP but also by several groups from the time that the news broke, these consequences will have to be looked into,” Valte said.

“It is an urgent matter and the Cabinet secretaries will be studying its impact,” she added.

Valte also raised the idea of an appeal, if warranted, as the Comelec is an independent constitutional body that is not under the executive department.

 â€“ With Edu Punay, Delon Porcalla, Alexis Romero, Christina Mendez, Sheila Crisostomo, Louella Desiderio, Ding Cervantes, Marvin Sy