Statement Regarding Alleged Money Laundering Case in the Philippines
Rizal Commercial Banking Corporation (RCBC) is one of Cathay Life Insurance Co. Ltd.’s (Cathay Life) overseas equity investments. As of December 31, 2015, Cathay Life’s equity ownership stake in RCBC was 21.93%.
In the alleged case of money laundering in the Philippines, RCBC is only one of the assigned remitting banks. With respect to this case, RCBC proactively reported to the Central Bank of the Philippines (Bangko Sentral ng Pilipinas, BSP) and has cooperated with the authorities involved in the investigation. Moreover, the Board of Directors of RCBC has appointed an investigation committee to clarify internal responsibilities. Cathay Life will closely monitor any updates in this case and report as required to the relevant authorities.
According to RCBC’s statement, RCBC is committed to instilling a high level Anti-Money Laundering and Terrorist Financing Suppression compliance culture to avoid being used as a conduit for the proceeds of an unlawful activity or from those who support and finance terrorism. RCBC fully supports international efforts to counter money laundering and terrorism financing.
RCBC has developed robust policies and procedures to facilitate compliance with anti-money laundering laws such as but not limited to:
• Customer identification and due diligence
• Identification of beneficial owners
• Risk based and tiered customer acceptance policies
• Retention of relevant records
• System based monitoring of covered and suspicious transactions
• Reporting of such transactions to the Anti-Money Laundering Council (AMLC)
• Continuous education and training for all directors, officers and employees of the bank
• Independent audit program that will ensure the completeness and accuracy of the information and identification documents obtained from clients, the covered and suspicious transaction reports submitted to AMLC and the records retained as well as adequacy and effectiveness of the training program on the prevention of money laundering and terrorism financing
• Screening of customers against relevant sanctions list
• Regular reporting to senior management regarding compliance with AML regulations
• Cooperation with the AMLC
• Designation of an AML Compliance Officer under the supervision of RCBC Chief Compliance Officer responsible for coordinating day-to-day compliance