Scribd
Upload
5K views2 pages

Case Study:: Reflection

The document discusses a case study about the laundering of $81 million stolen from Bangladesh's central bank through the Philippine banking system using the Rizal Commercial Banking Corporation (RCBC). It raises questions about whether RCBC president Lorenzo Tan and the board should be held accountable, the implications for the majority shareholder Yuchengco group given a previous scandal, whether the bank secrecy law can be used as a defense, and whether oversight failed. Suggestions for actions the board of directors could take include organizing committees to carry out responsibilities and acting as fiduciaries for shareholders on issues like hiring/firing executives and policies.

Uploaded by

Rhia shin Pasuquin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
5K views2 pages

Case Study:: Reflection

The document discusses a case study about the laundering of $81 million stolen from Bangladesh's central bank through the Philippine banking system using the Rizal Commercial Banking Corporation (RCBC). It raises questions about whether RCBC president Lorenzo Tan and the board should be held accountable, the implications for the majority shareholder Yuchengco group given a previous scandal, whether the bank secrecy law can be used as a defense, and whether oversight failed. Suggestions for actions the board of directors could take include organizing committees to carry out responsibilities and acting as fiduciaries for shareholders on issues like hiring/firing executives and policies.

Uploaded by

Rhia shin Pasuquin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Quizon, Joshua James B.

BSBA-2

CASE STUDY:

The scandal over the laundering of US$81M stolen by hackers through the local
banking system has opened the door for more speculations that the Philippines is a
dirty money haven. The Rizal Commercial Banking Corporation (RCBC) was
established in1960 as a development bank and is licensed by the Bangko Sentral ng
Pilipinas (BSP) for both commercial and investment banking. It is one of the largest
universal banks in the Philippines with total consolidated resources ofPhp554 billion
for full year 2017.

REFLECTION:

Questions for discussion:

1. Was the RCBC president liable? Should Tan be held accountable in this
debacle? Or was it the board who should be primarily responsible?
- Tan has been the CEO and President of RCBC since 2007. He oversaw RCBC
Universal Bank's expansion. Under Tan's leadership, RCBC has garnered multiple
honors from international organizations for being one of the top banks in the
country. Tan has vast expertise in the United States as well as abroad. RCBC
executives, led by Tan, invoked the country's banking secrecy rule to prohibit
them from releasing any pertinent information in the case.

2. Given the previous Pacific Plans scandal, what implications does this have
on the Yunchengcos as the controlling and majority shareholder?
- Previously, the Yuchengco group was engaged in the highly publicized demise of
its subsidiary Pacific Plans Inc. The top executives of the Yuchengco Group of
Companies (YGC) assured this writer that they did nothing illegal or unethical,
and that they intend to fight it in court, before the Securities and Exchange
Commission (SEC), and in the media.

3. Should the bank secrecy law be used as a defense in this type of


investigation? Should an exception to the rule be allowed, in aid of
legislation, as suggested by Senator Guinona? Is there a valid conflict of
interest, as claimed by Deguito’s counsel?
- Senator Guingona claimed that the bank secrecy law does not apply in this case
because the stolen money was owned by the Bangladesh government. Deguito
went on to say that she questioned the RCBC head office regarding the abrupt
remittance of such a large sum.
4. Did AMCL fail in its duty of oversight?
- AML system and processes, making it one of the best prepared in the country to
detect and prevent money laundering. It will be interesting to see if these steps
dissuade new instances of money laundering in the country.

5. What actions would you suggest the BOD to take?


- Typically, the board of directors is disorganized and incapable of taking on
responsibility. The most effective boards carry out their responsibilities through
committees that report to the full board. In general, the board acts as a fiduciary
on behalf of shareholders. A board is responsible for the hiring and firing of senior
executives, as well as dividend policy, option policies, and executive
remuneration.

You might also like