BSP says digging deeper into Wirecard scandal
MANILA, Philippines — The Bangko Sentral ng Pilipinas is digging deeper into the global accounting scandal involving German company Wirecard AG, with regulators now looking into possible violations of banking rules after two of the country's biggest lenders got dragged into the fiasco.
The investigation into the Wirecard mess now goes beyond potential money laundering as the BSP's Financial Supervision Sector probes "whether any banking regulations were breached," the central bank said in a statement on Friday.
Initial findings showed that rogue employees from BDO Unibank Inc. and Bank of the Philippine Islands (BPI) falsified bank documents that tied the two lenders to the accounting mess. That said, BSP Deputy Governor Chuchi Fonacier told Philstar.com that regulators are now trying to find out "the motivation behind those actions on the falsification of the bank certification."
As it is, the BSP stressed it has "strict regulations on the disqualification and watch-listing of erring bank officers."
"These regulations prevent individuals found as unfit from becoming officers in all BSP-supervised entities," the central bank added. "These measures will be used with their full force against any individual found culpable of wrongdoing."
The search for the $2.1-billion hole in Wirecard's accounting books uncovered by the German payments firm's external auditors reached the Philippines last month upon the discovery of “spurious” documents claiming that BDO and BPI held the missing money.
The lenders denied that Wirecard was a client, with no less than BSP Governor Benjamin Diokno saying that the money did not enter the Philippines' financial system. BDO and BPI have either suspended or fired employees found to have forged the bank documents.
For its part, the Anti-Money Laundering Council already said the agency stands ready to assist foreign counterparts that may look for the money, which Wirecard is now saying potentially did not exist at all.
"Strong financial oversight has always been one of the hallmarks of the Philippines’ economic success. Over the years, the BSP has instituted reforms that have promoted good corporate governance and effective risk management systems," the central bank said.
"It is because of a sound regulatory environment and proactive industry response that the Philippine banking system has remained strong and stable, playing a significant role in fueling economic growth over the years," it added.
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