BSP closes forex shops in P10-billion PDAF scam

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has revoked the license of two foreign exchange dealers linked to the P10-billion pork barrel scam allegedly masterminded by jailed businesswoman Janet Lim-Napoles.

In a statement issued yesterday, the BSP’s Monetary Board announced it had cancelled the certificates of registration of Zenaida Artuz’s Edzen Enterprises and Elliot Artuz’s World Wide Money Changer as remittance agents, foreign exchange dealers and money changers.

“The cancellation was due to significant violations of their Deeds of Undertaking,” the BSP said.

The BSP said the companies, both based in Ermita, Manila, violated their commitment to strictly comply with Republic Act 9160 or the Anti-Money Laundering Act, as amended, and its revised implementing rules and regulations.

Both Edzen Enterprises and World Wide Money Changer also violated the minimum procedures on the sale and purchase of foreign currencies by money changers and foreign exchange dealers as well as the transactional requirements for large value payouts.

Court data showed Edzen Enterprises and Key West Trading were the principal money remitters and foreign exchange dealers used by Napoles to send stolen funds from the Philippines to the United States.

Napoles and her associates allegedly siphoned off P10 billion in Priority Development Assistance Funds (PDAF) or pork barrel funds over an eight-year period. Of this amount, P3 billion reportedly went to Napoles.

The PDAF is a lump-sum appropriation under the control of individual members of the Senate and the House of Representatives who had discretion to assign the funds to particular development projects.