I.
Introduction
According According to RA 9610 or the Anti-Money Anti-Money Laundering Act Act of 2001, Sec. 4, money laundering is a crime here!y the "roceeds of an un#afu# acti$ity are transacted, there!y
ma%ing them a""ear to ha$e ha $e originated from #egitimate sources &he 'hi#i""ine !an% secrecy #as, among the strictest in the or#d, ha$e made our country e(treme#y $u#nera!#e to corru"tion, ta( e$asion and money #aundering and ha$e made corru"tion and ta( e$asion in$estigations e(treme#y difficu#t. )ith the recent *+1 mi##io mi##ion n of ang#a ang#ades desh h !an% heist, heist, its its mon money ey as e#ectr e#ectroni onica# ca##y #y trans transfer ferred red out of that that countrys account at the edera# Reser$e an% of /e or% and as money #aundered through the 'hi#i""ine financia# system. ne of the #argest digita# heists in history, this ca"er has e("osed the g#aring ea%nesses ea%n esses in our e(treme#y strict !an% secrecy #as. &he esta!#ishment of organied crime grou"s in our society has !ecome the mid-ife of another intricate e! of crimina#ity. 3ts ide and #ong-ranging threats undermine the so$ereignty of states, their economic sta!i#ity, financia# structures and their crimina# ustice system. &his is the transnationa# crime of Money Laundering hich organied crime grou"s, from drug syndicates, arms traffic%ing and the other !urgeoning areas of crimina# acti$ity, to "er"etuate their e(istence, e("and their o"erations and institutiona#ie their "resence in a mafia ty"e fashion.
3n the ear#y 15th century, the atho#ic hurch decreed against the im"osition of usurious usurious rates and considered considered it as a morta# morta# sin com"e##ing com"e##ing merchants merchants and money#enders money#enders to engaged in a $ariety of "ractices that e$entua##y !ecome the "recursors or mode#s of modern techni7ues for hiding, mo$ing and ashing crimina# money. y the year 1612, the or#d itnessed the first modern amnesty to crimina# money hen 8ng#and offered "irates ho a!andoned a!andoned their trade, !oth fu## "ardon and the right to %ee" their "roceeds. "roceeds. 3t is on#y in 1920s that the term money #aundering emerged to ha$e !een coined in the nited States, hen street gangs sought a seeming#y #egitimate e("#anation for the origins of their rac%et money. 3n Asia, it is heartening to note that during the 6 th AS8A/ Summit on 1: ;ecem!er 199+, $arious countries ha$e e("ressed recognition on transnationa# character of crimina# acti$ities, inc#uding the threats of money-#aundering.
II.
Facts about Bangladesh Bank money-laundering heist
Since the Anti-Money Laundering ounci#
as7ue, A#fred Santos >ergara, Michae# rancisco ru and ?essie hristo"her Lagrosas, ere o"ened ith Ria# ommercia# an%ing or"oration ergara, *2: mi##ion to >as7ue, and !u#% or *@0 mi##ion to Lagrosas. &he money as then conso#idated and de"osited to a ne do##ar account o"ened on the same day of )i##iam So o of ;A enturyte( &rading. Later, the sto#en funds ere transferred to 'hi#rem Ser$ices or"oration. 'hi#rem con$erted into "esos some of the *+1 mi##ion and de#i$ered the money in cash to a registered casino un%et o"erator named )ei%ang Bu, 8astern Caaii Leisure om"any, and #oom!erry Cote#s 3ncor"orated. ang#adesh an% ordered for a Dsto" "aymentE to R and thus re7uesting for the return of the sto#en funds. ut des"ite the order, R-?u"iter ranch continued to a##o ithdraa#s from the accounts. n e!uary 16, ang#adesh an% o$ernor Atiur Rahman to#d ang%o Sentra# ng 'i#i"inas o$ernor Amando &etangco ?r that Society for )or#dide 3nter!an% inancia# &e#ecommunication
;eguito, as%ed to meet her at ort onifacio, &aguig. o re$ea#ed that ;eguito informed him that she o"ened a fictitious do##ar and "eso !an% accounts for enturyte( ithout him %noing. n March 1, the ourt of A""ea#s started freeing the accounts inc#uding Gam Sin DGimE )ong, the "resident and genera# manager of 8astern Caaii Leisure om"any, and other re#ated accounts. )ong to#d the senate that casinoun%t o"erators ;ing Hhie and ao Shuhua faci#itated the entry of the #aundered money into 'hi#i""ine asinos. ao, ho )ong had %non for a!out + years, had a '4:0-mi##ion de!t to )ong after #osing money in casinos in 2014, he said.)ong said that he %ne ;ing through ao ho, he said, had F"romisedF him that he ou#d !ring in more casino "#ayers in the 'hi#i""ines. F&o foreigners !rought the *+1 mi##ion in the country. ne of them has !een in and out of the country and is a "o"u#ar un%et agent and high ro##er. 3 i## rite their names and "ut it in a sea#ed en$e#o"e, ith a co"y of their "ass"ort and i## su!mit it to the committee,F )ong to#d the Senate "ane# in i#i"ino.
III.
Body
&he case #ed to the resignation of its e(ecuti$e $ice "resident Rau# >ictor &an. 3t said the reason for &ans resignation is Dto "ursue other endea$ors,E hich ere not re$ea#ed. R than%ed &an for his se$en years of F$a#ua!#e ser$icesF to the com"any and ished him e## for his future endea$ors. &he !an%s !oard of directors a""ointed ar#os esar Mercado, senior $ice "resident, to re"#ace &an as acting treasurer effecti$e a#so )ednesday. &an attended se$era# Senate hearings on the money #aundering case !ut the R management itse#f has gi$en him c#earance from the contro$ersy. DRIs interna# in$estigation had "re$ious#y c#eared Mr. Rau# &an of any "artici"ation in or !reach of !an%ing "o#icies ith res"ect to the *+1M money #aundering issue,E the R reiterated in a statement attached to the disc#osure. R Lega# and Regu#atory Affairs Cead Mace# 8sta$i##o said it as not the first time &an e("ressed intent to resign. Fut of decency and honor, and des"ite his #ac% of in$o#$ement in the same, he tendered his resignation !ecause of command res"onsi!i#ity, as ;eguito - hose cu#"a!i#ity has !een c#ear#y and con$incing#y esta!#ished - as under him,F 8sta$i##o said in a statement. R ear#ier issued an a"o#ogy for the in$o#$ement of its "ersonne# in the money #aundering scheme, such as former !ranch manager Maia Santos-;eguito. &he scanda# shou#d "rod the go$ernment to conduct a thorough re$ie of to thingsJ first, the technica# security of our !an%ing system, to ensure that a simi#ar cy!ertheft i## not ha""en or is not a#ready ha""eningK second, our antimoney #aundering #as and regu#ations, in conunction ith the interna# contro#s of !an%s, to identify the #oo"ho#es that ena!#ed such a huge amount of sto#en money to !e #aundered through a #oca# !an%. ur antimoney #aundering #as im"ose "ena#ties if it is "ro$en that the !an% a##oed the "roceeds of crimes #i%e ro!!ery, corru"tion, drugs and i##ega# gam!#ing to !e de"osited ith it. &he "ena#ty for !an% em"#oyees is im"risonment, and for the !an% itse#f, re$ocation or sus"ension of its !an%ing #icense. &he Senate in7uiry into the scanda# is #imiting its focus to the "ersona# #ia!i#ities of the em"#oyees of the !an% !ranch in$o#$ed. &he senators are treating R ith %id g#o$es,
as shon in their #ac% of "ro!ing 7uestions on the "otentia# #ia!i#ity of the !an%ing institution. )itting#y or unitting#y, the senators are conducting their in$estigation not Din aid of #egis#ation,E !ut in aid of "ro$ing the defense of Rthat the scanda# is the so#e #ia!i#ity of a Drogue em"#oyeeE ho as ma%ing money on her on. &he !an% is "roecting itse#f as an inured "arty. 3n other countries, the !an% itse#f is crimina##y #ia!#e if there as systemic fai#ure or inade7uacies in its interna# contro#s to "re$ent the money #aundering. &he !an% is a#so crimina##y #ia!#e if it commits Di##fu# !#indnessE des"ite the c#ear "resence of Dred f#ags.E Any !an% must not !enefit from a scheme of creating a fictitious a## to insu#ate its to" management from #ia!i#ity. &o" e(ecuti$es must not !e a##oed to !ury their heads in the sand hi#e dirty money is !eing #aundered in one of their !ranches, there!y ena!#ing the !an% to rea" indfa## "rofits if the crime is not noticed, and to confine #ia!i#ity to sca"egoat em"#oyees if the crime is e("osed. &he senators shou#d #ea$e the crimina# in$estigation of the !an% em"#oyees to the ;e"artment of ?ustice and instead focus their attention on re$ieing hat R did hen the red f#ags of money #aundering a""eared on their monitoring screens. IV.
Conclusion
&he 'hi#i""ines has !ecome an idea# "#ace for money #aundering !ecause its strict !an% secrecy #as ma%e it $ery easy for crimina#s and money #aunderers. &he 'hi#i""ine antimoney #aundering #as a#so do not co$er casinos and financia# transactions in rea# estate, ee#ry and non- "rofit organiations. &hese are the areas here money #aundering is norma##y done. 3t is tem"ting to !e#ie$e that these areas ere de#i!erate#y not inc#uded s"ecifica##y to faci#itate money #aundering and ta( e$asion "ractices. Money #aundering is a D"rofit centerE for many !an%s a## o$er the or#d !ecause they deri$e huge "rofits from "roceeds of corru"tion, i##ega# drugs, i##ega# gam!#ing and other crimes. &he 'hi#i""ine go$ernment shou#d !e more acti$e in im"#ementing its #as to "re$ent these i##ega# acts from entering the country. Lama%ers shou#d re$ise and amen the RA 9610 or the Anti-Money Laundering Act of 2001 and #essening the secrecy on !an% accounts
hich are under the RA 140: or the La on Secrecy of an% ;e"osits. R, 'hi#Rem ith other entities in$o#$ed and a## !usiness not in$o#$ed, shou#d im"ro$e their "ractice on !eing ethica#. 3f they ou#d these scanda#s i## !e #essen thus im"ro$ing the occurrence of such i##ega# and unethica# acts. 3t ou#d a#so he#" the 'hi#i""ines re"utation. 3f the Senate is serious in strengthening 'hi#i""ine #as to "re$ent money #aundering, it must initiate amendments !y ma%ing !an%s #ia!#e to "ay hundreds of mi##ions, or e$en !i##ions, of "esos in crimina# "ena#ty under the doctrine of D#et the master anser.E V.
References
2016 ang#adesh an% heist. era, .. <2016, /o$em!er 22=. AML fi#es charges $s. 6 R e(cess for Dmoney#aunderingE. Retrie$ed ;ecem!er 01, 2016, from htt"Jg#o!a#nation.in7uirer.net1:0001am#c-fi#es-charges-$s-6-rc!c-e(ecs-money#aundering a$i#an, ?. < 2016, March @1=. /etor%J )hos ho in the R money-#aundering scam. Retrie$ed ;ecem!er 01,2016, from htt"J.ra""#er.comnes!rea%in-de"th12564:netor%-rc!c-money-#aundering-scam-"ersona#ities
utierre, /. <2016, March 29=. R money-#aundering scam mirror sins of the "ast. Retrie$ed ;ecem!er 01, 2016, from htt"J.ra""#er.comnes!rea%in$estigati$e126515-rsecscam-rc!c-scanda#-money-#aundering Co *+1 mi##ion s#i""ed through 'hi#i""ine crac%s. <2016, March 22=. Retrie$ed ;ecem!er 01,2016, from htt"J.!or#don#ine.comcontent."h"PsectionQ&o"Storytit#eQho+1-mi##ion-s#i""ed-through-"hi#i""ine-crac%sidQ124+@+ Money Laundering.
R reorganies !oard after ang#adesh an% Ceist Scanda#. <2016, ?u#y 26=. Retrie$ed ;ecem!er 01, 2016, from htt"J.ra""#er.com!usinessindustries!an%ing-andfinancia#-ser$ices141019-rc!c-reorganies-!oard-!ang#adesh-!an%-heist R treasurer resigns amid money #aundering scanda#. <2016, A"ri# 22=. Retrie$ed ;ecem!er 01, 2016, from htt"Jcnn"hi#i""ines.comnes20160421R-+1-mi##ion-money#aundering-case-treasurer-resigns.htm# >i##anue$a, M.A. < 2016, A"ri# 1:=. Money-#aundering D!usinessE. Retrie$ed ;ecem!er 1, 20 16, from htt"J."hi#star.como"inion2016042:1:56::5money-#aundering-!usiness
