Yuchengcos told to pay P1B record fine for RCBC’s money laundering case
Rizal Commercial Banking Corp. of the Yuchengco family has been fined a record P1 billion by the Bangko Sentral ng Pilipinas for being remiss in its duties in connection with the $81 million cyber heist of Bangladeshi foreign reserves that ended up in the bank.
This is the largest amount ever imposed by the central bank on a financial institution.
The amount will be paid in two equal tranches over a one-year period, the BSP said in a statement.
According to the BSP, the monetary penalty imposed on RCBC “ affirms its commitment to ensure the stability of the country’s financial system through strong and effective regulation.”
The imposition of the fine followed the central bank’s probe into how the stolen funds wound up in RCBC, wired to remittance firm Philrem Services Corp. and funneled to casinos.
In April, the central bank said it would penalize financial institutions that would be found to have breached rules.
RCBC said it would abide by the BSP’s order, which was part of increasing regulatory oversight and restrictions.
“With the payment, RCBC affirms its continued viability and determination to fulfill its firm commitment against money laundering, terrorism and other transnational crimes to ensure the stability of the banking system,” said RCBC president and CEO Gil A. Buenaventura.