1,297 Filipinos control 65.92%
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- - vigilance by all banks, central banks included, against cybercrime.
“What happened to Bangladesh Bank can happen to any bank if it’s not careful,” he said, noting that the Philippine side of this story is primarily an issue of Anti-Money LaunderingCombating the Financing of Terrorism (AML-CFT) compliance gaps.
He said the BSP regulated financial institutions involved have been investi gated and will be all held accountable for their failure to comply with AML- CFT rules and regulations.
The enforcement actions are now in various stages, he highlighted, noting that beyond these actions, the BSP is also drawing lessons to plug potential loopholes through amendments to the Anti-Money Laundering Act (AMLA) as well as its implementing rules and regulations.
“This is where the proposed designation of casinos as covered persons under the AMLA and the formal designation of BSP as regulator of money service businesses (MSBs) for AMLA purposes come in. These require AMLA amendment,” he explained.
On the other hand, Espenilla said the memorandum to banks issued by BSP in April is but a reiteration of an existing regulation requiring banks to be very cautious in dealing with MSBs and to deal only with those MSBs registered with both BSP and the AMLC Secretariat (AMLCS).
“We will also be amending soon Circular 471, issued in 2005, to tighten further the BSP oversight over MSBs. The draft is currently under industry exposure,” he added.
Another regulation is under study to regulate virtual currency operations in the Philippines as a special type of MSB to ensure their compliance with the AMLA, Espenilla said.
“Consultations on this have been completed,” he noted.
Statistics showed that the Philippines is apparently third in the world in terms of Bitcoin applications, with a growth rate of over 100 percent as of the first half of 2015.
In the Philippines, bitcoin exchanges or estimated transactions passing through the registered companies range between $2 million to $3 million per month.