RCBC faces image crisis; shares slump

The Rizal Commercial Banking Corporation (RCBC) is currently facing image crisis following the involvement of its Jupiter branch in the theft of money from the Bangladesh Bank, said senior officials of the bank.
The RCBC shares have fallen since the issue broke. Share prices hit a 52-week low of P28.75 during the height of the scandal. RCBC President Lorenzo Villanueva Tan said that the bank's market capitalization lost "a couple billion pesos" since the incident.
As such, the bank is planning to return the money to regain its image and avoid business losses, the legal adviser and other senior officials of the bank told a Senate hearing on Tuesday. The money the RCBC would return could amount to as much as $46.4 million, they hinted.
The bank is willing to return from its own fund a major portion of the $81-million money stolen from the Bangladesh central bank, if the bank is unable to recover the money from its clients. The RCBC president told this to the Philippines Senate blue ribbon committee.
A proposal in this regard has been forwarded to its board, the RCBC president added.
The RCBC, a 150-year old bank considered to be the third largest in the Philippines, has a total asset of about P215 to P534 billion and a total capital of around P56 billion, its president Tan informed the Senate.
Meanwhile, Bangladesh Ambassador to Philippines James Gomes told Independent TV yesterday that the remittance companies, who converted the stolen money and transferred these to various casinos, have contacted the embassy and expressed their willingness to return $13 million. The embassy, however, declined to accept any money and has asked them to follow due procedure and return the amount through the central banks.
“RCBC is the receiving bank that got the money transferred to them. So, we ask the RCBC that they have to return the $81 million dollars. We are not interested in the case. You have filed cases as per your rules and regulations. But that does not concern us. You have to return     the stolen $81 million dollars and we are standing firm on that,” the ambassador added.

Despite the passing of almost two months, the theft of money from the Bangladesh central bank is widely discussed in the Philippines.
Meanwhile, former RCBC Jupiter branch manager Maia Santos-Deguito is facing a case for violation of the Anti-Money Laundering Law for allowing and facilitating the withdrawal transaction of five accounts who were eventually known to be fictitious. Other respondents on the case, businessmen and junket operators Kam Sin “Kim” Wong and Weikang Xu are expected to attend the next preliminary hearing set on April 19.
Deguito during the previous Senate hearing disclosed that the said businessmen orchestrated the biggest bank heist in history. Wong however said it was Deguito who set up bogus bank accounts, and bribed him to cover her tracks.
Of the $81 million stolen by hackers from the Bangladesh central bank, about half is said to be recoverable from various sources: businessman Kam Sin Wong, casino operator Solaire Resort and Casino, and remittance firm PhilRem.
Unidentified hackers using official electronic bank messaging technology transferred $81 million from Bangladesh Bank’s reserves kept in an account with the Federal Reserve Bank of New York to accounts of RCBC in the Philippines in early February. The incident caused a global stir with investigations ongoing in Bangladesh, the Philippines and Sri Lanka. Bangladesh Bank Governor Atiur Rahman also resigned following the reserve heist.

RCBC faces image crisis; shares slump

The Rizal Commercial Banking Corporation (RCBC) is currently facing image crisis following the involvement of its Jupiter branch in the theft of money from the Bangladesh Bank, said senior officials of the bank. The RCBC shares have fallen since the issue broke. Share prices hit a 52-week low of P28.75 during the height of the scandal. RCBC President Lorenzo Villanueva Tan said that the banks market capitalization lost a couple billion pesos since the incident. As such, the bank is planning to return the money to regain its image and avoid business losses, the legal adviser and other senior officials of the bank told a Senate hearing on Tuesday. The money the RCBC would return could amount to as much as $46.4 million, they hinted. The bank is willing to return from its own fund a major portion of the $81-million money stolen from the Bangladesh central bank, if the bank is unable to recover the money from its clients. The RCBC president told this to the Philippines Senate blue ribbon committee. A proposal in this regard has been forwarded to its board, the RCBC president added. The RCBC, a 150-year old bank considered to be the third largest in the Philippines, has a total asset of about P215 to P534 billion and a total capital of around P56 billion, its president Tan informed the Senate. Meanwhile, Bangladesh Ambassador to Philippines James Gomes told Independent TV yesterday that the remittance companies, who converted the stolen money and transferred these to various casinos, have contacted the embassy and expressed their willingness to return $13 million. The embassy, however, declined to accept any money and has asked them to follow due procedure and return the amount through the central banks. RCBC is the receiving bank that got the money transferred to them. So, we ask the RCBC that they have to return the $81 million dollars. We are not interested in the case. You have filed cases as per your rules and regulations. But that does not concern us. You have to return the stolen $81 million dollars and we are standing firm on that, the ambassador added. Despite the passing of almost two months, the theft of money from the Bangladesh central bank is widely discussed in the Philippines. Meanwhile, former RCBC Jupiter branch manager Maia Santos-Deguito is facing a case for violation of the Anti-Money Laundering Law for allowing and facilitating the withdrawal transaction of five accounts who were eventually known to be fictitious. Other respondents on the case, businessmen and junket operators Kam Sin Kim Wong and Weikang Xu are expected to attend the next preliminary hearing set on April 19. Deguito during the previous Senate hearing disclosed that the said businessmen orchestrated the biggest bank heist in history. Wong however said it was Deguito who set up bogus bank accounts, and bribed him to cover her tracks. Of the $81 million stolen by hackers from the Bangladesh central bank, about half is said to be recoverable from various sources: businessman Kam Sin Wong, casino operator Solaire Resort and Casino, and remittance firm PhilRem. Unidentified hackers using official electronic bank messaging technology transferred $81 million from Bangladesh Banks reserves kept in an account with the Federal Reserve Bank of New York to accounts of RCBC in the Philippines in early February. The incident caused a global stir with investigations ongoing in Bangladesh, the Philippines and Sri Lanka. Bangladesh Bank Governor Atiur Rahman also resigned following the reserve heist.