Metrobank president, officials to be suspended for fraud case

By Melissa Luz T. Lopez,

Senior Reporter

AT LEAST 12 executives and officers at Metropolitan Bank & Trust Co. (Metrobank) will be suspended
over the P1.75-billion internal fraud case unearthed last July, which includes a three-month sanction for
the bank’s president.

A well-placed source familiar with the matter said Metrobank President Fabian S. Dee as well as
Philippine Savings Bank President Vicente R. Cuna, Jr. will serve 90-day suspensions as part of the
sanctions imposed by the Bangko Sentral ng Pilipinas (BSP) on officials who “failed to perform adequate
oversight” that led to the embezzling of P1.75 billion by a bank officer.

Prior to his secondment to the thrift banking unit, Mr. Cuna served as head of Metrobank’s Institutional
Banking Sector and Corporate Banking Group.

Initial reports pegged the amount pocketed from the scheme at P900 million from fake loans using the
name of the Gokongwei-led Universal Robina Corp. — one of the bank’s long-time clients — in multiple
tranches worth P30 million.

This was reportedly crafted by former bank vice-president and corporate service management head Maria
Victoria S. Lopez, who has been arrested for multiple criminal raps back in July.

A heftier 120-day suspension has also been meted out to another bank officer who handled the opening of
bank accounts where the proceeds of the fictitious business loans were transferred to, the source said.

It is up for the bank to decide when the concerned officers will serve their respective suspensions, but this
must be implemented in one uninterrupted period.

Sought for confirmation, Metrobank Vice-President and Head of Investor Relations Joey T. Mapa said:
“The individual details of the sanctions were not publicly released by the BSP, thus we cannot disclose
anything beyond the official statement.”
 The Ty-owned lender has also been required to “enhance” protocols to improve corporate governance,
credit administration, internal controls and audit, risk management, and customer onboarding and monitor
within a year to prevent a repeat of the case.

The BSP has also ordered Metrobank to add P4.45 billion to its reserves to cover for “higher operational
risk” following the incident. This would be on top of other capital buffer allocations such as the reserve
standard at 20% of total asset base, and will only be lifted once the regulator sees that the lender has
installed “adequate” controls.

In a disclosure on Tuesday, Metrobank said that their senior management has “accepted command
responsibility” over the case and will implement the BSP’s sanctions, even as the lender maintained that
the bank remains “safe and sound.”

Metrobank is the second-biggest lender in the country with a P1.99-trillion asset base as of end-
September. The listed lender reported P15.7 billion in consolidated net income for the first nine months,
up from P14.3 billion booked during the same period last year.

Metrobank sanctioned by Monetary Board over fraud case

ABS-CBN News

Posted at Nov 28 2017 10:34 AM | Updated as of Nov 28 2017 08:49 PM

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MANILA - (UPDATE) The Monetary Board of the Bangko Sentral ng Pilipinas said Tuesday it
sanctioned Metrobank over alleged fraudulent transactions worth P1.75 billion.
Bank officers who were "complacent or remiss" in their duties should face reprimand or suspension, the
Monetary Board said in a statement posted on the central bank website.
 Metrobank was also required to allocate P4.45 billion of its capital to cover for "higher operational risk,"
the regulator said.
It was the second time in a year that regulators sanctioned a bank over alleged fraud. In August 2016,
RCBC was fined a record P1 billion after a portion of the $81 million that was stolen from Bangladesh's
foreign reserves was shifted to one of its branches.
In July this year, Metrobank executive Maria Victoria Lopez, who had worked for the Ty-owned lender
for 3 decades, was arrested after she allegedly attempted to shift P2.25 million in interest from
unauthorized loans.
The interest payment was for one of 2 borrowings from a P25-billion pool. The bank's client, which was
authorized to borrow from the fund, denied executing the 2 loans worth P900 million and P850 million,
officials said.
Lopez allegedly directed the issuance of a manager's check, a "red flag" because such checks are issued
only to corporate clients, according to the National Bureau of Investigation.
She was later charged with theft and falsification for allegedly forging signatures and breaching protocols
to defraud the bank.

 How NBI caught Metrobank executive linked to fraud

 Metrobank exec charged for P1.75-B fraudulent loans

"Together with medium to long term initiatives that will serve to improve governance, controls, and
compliance, the MB reaffirms the safety and soundness of MBTC," the Monetary Board said.
Metrobank said the case was "isolated" and that no customer was affected.
"The board and senior management accept accountability and command responsibility for the incident
and commits to implementing the directives. MBTC assures the public that bank operations remain
business as usual," the bank said.
The bank said it was in a "strong position" to set aside P4.45 billion of capital reserve with its P2 trillion
in assets and P210 billion in equity.
Shares of Metrobank closed 2 percent higher to P95.80 on Tuesday, bucking a 0.83 percent decline in the
main index.

How NBI caught Metrobank executive linked to fraud

ABS-CBN News

Posted at Jul 21 2017 04:07 PM | Updated as of Jul 23 2017 08:38 AM

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Deputy Ferdinand Lavin, Deputy Director for Forensic Investigation Service talks to Metrobank
executive Maria Victoria Lopez, who allegedly embezzled millions of pesos from the bank. George
Calvelo, ABS-CBN News
MANILA (2nd UPDATE) - A bank executive allegedly forged signatures and breached protocols to
defraud one of the country's largest lenders, National Bureau of Investigation officials said Friday.
The suspect, Maria Victoria Lopez, was arrested on July 18 after she allegedly attempted to shift P2.25
million in interest from unauthorized loans, officials said.
Lopez was presented to reporters wearing an orange detainee's shirt and with her face wrapped with a
shawl.
The interest payment was for one of 2 borrowings from a P25-billion pool. The bank's client, which was
authorized to borrow from the fund, denied executing the 2 loans worth P900 million and P850 million,
officials said.
The NBI did not name Metrobank, the country's largest lender, which on Friday confirmed the arrest of an
individual for alleged fraud. The bank's admission came after the Philippine Daily Inquirer reported the
case.
"The biggest loss on this is the integrity of the banking system and the internal control system of the
bank," said NBI spokesman Ferdinand Lavin, adding authorities were "doing everything" to safeguard the
industry.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi Fonacier meanwhile assured that the
incident is an "isolated case" and that the banking system is "well-capitalized."
"Metrobank is a big bank. It can handle the situation," Fonacier told reporters.
Lopez had worked for the bank for 3 decades and was earning around P250,000 per month as head of
corporate services. She could be tried for qualified theft, falsification of documents and violation of
banking laws, officials said.
"She's not cooperating. She's not talking," Lavin said, adding an investigation was underway to determine
if other people were involved.
Lopez allegedly directed the issuance of a manager's check to an individual, a "red flag" because such
checks are issued only to corporate clients, said Norman Aguirre, the NBI agent on case.
"There were irregularities in the documents itself, indicating falsification such as different fonts, dubious
signatures," Aguirre said.
"The bank conducted an internal inquiry, confirmed that the client has a loan with the bank or if they have
draw-downs. Much to their dismay, they discovered such loans were unknown to the client," he said.
BSP Governor Nestor Espenilla said regulators were investigating the fraud, the latest in a wave of
controversies to hit the banking system since last year.
Espenilla said he expected the lender, controlled by taipan George Ty, to be "resilient."
In February 2016, unidentified hackers shifted $81 million from Bangladesh's foreign reserves to an
RCBC branch in Makati City.
The BSP fined the Yuchengco-owned lender a record P1 billion over the incident, which exposed the
vulnerabilities of the financial system to money laundering.
Legislators also recently investigated local banks over glitches.
Last month, Bank of the Philippine Islands' digital channels were paralyzed for 2 days due to what it said
was an "internal error."
The country's largest lender, BDO Unibank, later admitted that 7 of its ATMs were "compromised" in
a "skimming" attack that allowed unauthorized transactions.

BSP slaps sanctions on Metrobank for P1.75-B internal fraud case

The sanctions range from reprimanding and suspending bank officials guilty of lack of oversight, to
requiring Metrobank to set aside P4.45 billion to cover for higher operational risk and being subjected to
periodic review

Chris Schnabel
@mickschnabel
Published 12:43 PM, November 28, 2017
Updated 3:31 PM, November 28, 2017

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MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) officially sanctioned Ty-led Metropolitan
Bank and Trust Company (Metrobank) in connection with an internal fraud case.

The internal fraud, which was allegedly carried out by one of the bank's vice presidents, was initially
estimated to amount to P900 million but was later thought to be as high as P1.75 billion.

Charges of qualified theft, falsification, and violation of the General Banking Law were filed
against Maria Victoria Lopez, vice president of the Corporate Service Unit at Metrobank's Makati City
head office, in August.
–– ADVERTISEMENT ––

In a statement on Tuesday, November 28, the BSP Monetary Board said it had approved sanctions on
Metrobank.

"The sanctions imposed ranged from reprimand to suspension of directors and officers who failed to
perform adequate oversight and/or have been complacent/remiss of their duties and responsibilities," the
statement reads.

"Likewise, MBTC was required to allocate approximately P4.45 billion of its capital on a consolidated
basis to cover for higher operational risk. The requirement is subject to periodic review and would be
lifted when the Bank is determined to have put in place adequate risk control measures to address the
weaknesses noted."

Beyond that, the BSP also required Metrobank to submit a Letter of Commitment, to be implemented and
completed within one year, to enhance corporate governance, credit administration, internal controls and
audit, risk management, and customer on-boarding and monitoring processes.

The BSP said it took into consideration Metrobank's strong financial condition and immediate corrective
actions to contain further financial damage. The Ty-led bank is currently the second largest in the country
with P1.62 trillion in assets as of June 2017.

Last year, the BSP fined Yuchengco-led Rizal Commercial Banking Corporation (RCBC) a record P1
billion in connection with its role in the Bangladesh Bank heist. –
Metrobank files criminal complaint vs employee, two others in ₱995-million fraud
By Lara Parpan, CNN Philippines
Updated 16:47 PM PHT Wed, August 2, 2017
1.3K34

Ma. Victoria Lopez is presented by NBI agents on July 17 after allegedly defrauding Metrobank of
nearly ₱1 billion. (FILE PHOTO)

Metro Manila (CNN Philippines, August 2) — Metrobank filed a criminal complaint against an
employee and two others for allegedly defrauding the bank of nearly ₱1-billion, a document obtained
Tuesday said.

Metropolitan Bank & Trust Corp., the country's second-largest bank, filed a joint complaint-affidavit with
the Department of Justice (DOJ) dated July 24, 2017, one week after the National Bureau of Investigation
arrested the bank's head of Corporate Service Management Division, Ma. Victoria S. Lopez.

Also read: NBI nabs Metrobank official suspected to be behind fraud

In the complaint-affidavit, Metrobank, represented by its Department of Internal Affairs head, Jose L.
Ballesteros, called on the DOJ to prosecute Lopez and two others on the two charges of qualified theft
through falsification of commercial documents, which is an offense under the Revised Penal Code; and
falsification of commercial documents, which is a violation of the General Banking Law of 2000.

It also named two others as conspirators, Hubert Co and Sue Sai. Co was named the payee of the cashier's
checks, while Sai's name was written at the back of the cashier's checks, and identified as the person who
facilitated the deposit of the checks and the transfer of funds into a bank account, the bank said.

The bank said "there is sufficient ground to engender a well-founded belief that Respondents committed
the crimes charged."

"It is thus most respectfully prayed that this Honorable Office immediately issue a Resolution
recommending prosecution of the present case," Metrobank added.

Documents forged, authorization misrepresented

In the complaint-affidavit, Metrobank recounted how Lopez used the account of one of the bank's biggest
clients and forged documents to enable her to issue four cashier's checks and a promissory note
totaling₱995,875.000.00. Lopez has been with the bank for 30 years.

The first of four checks to Co was issued on September 21, 2013 in the amount of ₱20.2 million.
Subsequent cashier's checks were made out to Co in the following amounts and dates: ₱10.025 million on
January 26, 2015; ₱35.35 million on June 21, 2017, and ₱30.3 million on June 30, 2017.

The biggest amount was for a ₱900-million promissory note on June 16, 2017, made in favor of
Metrobank to cover a loan under a credit line extended by the bank, the document said.

"Based on Metrobank's initial investigation, the whole proceeds of the loan amounting to
₱900,000,000.00 was taken by Respondent Lopez through the issuance of cashier's checks or other
means," Metrobank said.

Metrobank said it uncovered the fraud on July 13, 2017, when its Corporate Banking Group "discovered
dubious letters" allegedly from the client directing the bank to debit its account for the two separate
checks issued in June 2017. The way the letter was presented, the lack of protocol observed by Lopez in
vetting the signatures on the letter, raised red flags. Lopez was arrested by the NBI on July 17.

After double-checking with the bank's client to ensure that such debits were authorized, the client denied
the existence of the letters or of any requests to issue cashier's checks, the complaint-affidavit stated.

Lawyer: Alleged conspirators unaware of fraud

Lawyers for Co and Sai said the two were taken advantage of by Lopez and that they had no knowledge
of "her elaborate scheme." The two had lent money to Lopez and were unaware that they were being
repaid for the loan they extended to her through someone else's account, they added. It was not
immediately known for what purposes the loans to Lopez were to be used.

"Ms. Lopez fooled my clients by personally borrowing from them and paying them with manager's or
cashier's checks," Regie Tongol said in a statement to CNN Philippines. Tongol added that the checks
they encashed that were issued to them by Lopez are transactions that were "legal and aboveboard as
simple loan contracts."
"They have no way of knowing that the money paid came from the other victims of Ms. Lopez. My
clients are simple people duped by Ms. Lopez into being involuntary and unwilling participants in her
elaborate scheme," the lawyer said.

Following the arrest of Lopez, the Bankers Association of the Philippines said it was confident that
Metrobank would take measures to ensure that this incident will not happen again.

Metrobank is the country's second largest bank with assets of ₱1.6 trillion, according to the Bangko
Sentral ng Pilipinas.

Quiet village where Metrobank exec in P900-M fraud hails from is shocked by scandal
By
Bim Santos, Bloomberg TV Philippines | InterAksyon
| July 25, 2017, 3:06 PM
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A Metrobank branch. InterAksyon file photo

BULACAN, Philippines – In a small rural barrio in Angat town in this Central Luzon province, the key
suspect in one of the country’s biggest bank scandals grew up. These days the quiet village is in shock,
unable to reconcile their image of their kind, generous neighbor with news reports that she had
perpetrated an operation that has rocked major lender Metrobank.

According to the National Bureau of Investigation, Metrobank vice president for corporate services Maria
Victoria (Marivic) Lopez authorized two bogus loans, misusing the name of food giant Universal Robina
Corp. (URC), a regular client of the bank.

The bank has yet to confirm exactly how much it lost, but police say she may have gotten away with as
much as P1.75 billion in fraud — or more than the P900 million earlier reported.

The multi-million scandal, that has sent the central bank investigating as well, shocked this quiet town
where Lopez owns at least two large properties–a house and a large events space that the bank executive
bought and developed.

Relatives and neighbors all attest to Lopez’s generosity, and say she has allowed community members to
use her property for free.
“She’s a very simple person, matalino. At siya, pati ang pamilya niya, ay kilala sa lugar namin sa
pagiging mabait. Mabubuting tao sila sa samin sa baryo [She and her family are known to our
community for being very kind],” said neighbor Edna Fernandez.

Lopez’s cousin Mercedita Sta. Ana Dayata affirms this. “Ang pagkakakilala ko talaga sa kaniya,
mabuting tao siya, ganun, mabait siya [I really know her as a good person].”

Lopez is also known for hosting an annual party where she hands out Christmas gifts to the town’s senior
citizens.

Barangay official Antonio Cruz Jr. had this to say of his constituent: “Mabait na bata yun [She’s a good
person],” he said, adding she is very helpful to “senior citizens like me” and likes to throw parties for
them.

“Lalo na kung magpa-pasko nagpapa-party yan at nagkakaroon ng mga kung sino gusto kumanta,
magbibigay yan ng gantimpala siyempre… At bago matapos ang party nagbibigay yan ng mga supot;
mga sari-sari para sa mga katulad namin na senior citizen [She likes to throw parties especially just
before Christmas, where she gives prizes to people who sing. When the parties end she gives out bags of
various gifts to senior citizens].”

Police probers said earlier that Lopez has been with Metrobank for 30 years and was just one year shy of
retirement.

As vice president for corporate services, she is said to earn P250,000 a month.

Lopez reportedly owns the Menage Premiere Salon, which has five locations in upscale communities
around Metro Manila.

Besides the NBI and the Bangko Sentral ng Pilipinas, the Anti-Money Laundering Council (AMLC) is
also investigating.

The NBI has filed charges of theft, violation of banking law and falsification of documents against Lopez,
who
According to the NBI, Lopez supposedly fabricated documents and facilitated the disbursement of loans
into fake accounts under the name of one of their corporate clients, the Gokongwei-led Universal Robina
Corporation (URC).

Through the P25-billion credit line of URC, Lopez was able to process loans amounting to P900 million
and P850 million.

According to reports, the suspect was able to release the loans "in tranches of P30 million" for the bank to
have lost as much as P2.5 billion.

Meanwhile, the Gokongwei-led URC said in a separate disclosure last week that it would not be affected
financially by the fraud.

Questions abound

The anomaly was only discovered when Metrobank noticed irregularities in the supposed letter request
from the client, which asked the bank to issue a P2.25-million manager's check to an individual payee as
interest payment.

After verifying with URC, the company said it was not aware of the letter or of the account where the
payment would be debited. (READ: Banking sector backs Metrobank to pull through P900-M fraud case)

"So what we want to know now is how often the audit happens, from the side of the BSP and the bank
itself. How come the bank did not detect what was going on at the early onset?" Escudero asked.

Metrobank and the NBI are also looking into the possibility that the suspect connived with other bank
employees in committing the fraudulent transactions.

Aside from the full-blown investigation by Metrobank and the NBI, a separate probe will also be done by
AMLC, under the supervision of the BSP, to check Metrobank's internal controls.

Escudero said they will await results of the investigations and from there, decide whether or not a Senate
probe would still be necessary.

"We expect banks to immediately detect red flags in their system and immediately resolve internal
matters. Apart from ensuring that the culprit will be brought to justice, Metrobank must assure its clients
they have a robust internal control framework and that they will rigorously monitor their system," he said.

Lopez has been charged with qualified theft, falsification, and violation of the General Banking Law
before the Makati City Prosecutor's Office

remains in custody.
 Metropolitan Bank and Trust Company

Headquarters:
Metrobank Plaza, Sen. Gil J. Puyat Avenue,
Makati City. (632) 8700 - 700
 Metrobank is a leading financial conglomerate with diversified business portfolio including:
investment banking, thrift banking, leasing and financing, bancassurance, and credit cards.
 Offers full range banking services to large local and multinational corporations, middle market
and SMEs, high net-worth individuals and retail segment.
 Established in 1962 to provide financial services to the Filipino-Chinese community.
 Solid track record spanning over 50 years; multi-awarded bank.
 Investment grade credit rating.
 Majority owned by the Ty Family whose major business interests include financial services, real
estate development, power and manufacturing.
To know more about the Bank's business operations, click here.

History

Founded in September 5, 1962, Metropolitan Bank & Trust Co. (Metrobank) has since become the
premier universal bank and among the foremost financial institutions in the Philippines. It offers a full
range of banking and other financial products and services, including corporate, commercial and
consumer banking, as well as credit card, remittances, leasing, investment banking and trust banking.
Metrobank currently spans a consolidated network of over 2,300 ATMs nationwide; over 950 domestic
branches; and 32 foreign branches, subsidiaries, and representative offices.

Metrobank was incorporated in Binondo, Manila by a group of Filipino businessmen principally to

provide financial services to the Filipino-Chinese community. It opened its first local branch in 1963, then
expanded beyond Philippine shores only a few years after its establishment. Metrobank rolled out its first
international branch in Taipei in 1970 and a representative office in Hong Kong in 1973. In 1975,
Metrobank became the first of the private banks to move into American territory when it opened its office
in Guam. It later established branches in the United States mainland cities of Los Angeles and New York.

It established Metrobank Foundation, Inc. in 1979, putting emphasis on both business success and
community contribution. The Foundation has since become one of the largest and most respected
charitable organizations in Asia.

In 1981, Metrobank was listed in the Philippine Stock Exchange and acquired its universal banking
license, gaining significant equity ownerships in local and international subsidiaries. It established its own
credit card company, Unibancard Corporation (now Metrobank Card Corporation) in 1986. In 1988,
Metrobank entered into a joint venture with Japan's largest automotive manufacturer and Mitsui
Corporation to establish Toyota Motor Philippines Corporation. A decade later, it partnered with another
global giant, the AXA Group, to give birth to Philippine AXA Life Insurance Corporation.

In 1990, Metrobank launched the country's first and only talking ATM, Metrobank E.T. In 1995,
Metrobank became the first billion dollar bank with total capital of Php22.8 billion, the largest in the
industry. It is the first local bank to raise supplementary capital overseas with a total of US$325 million in
Lower Tier 2 Capital and Hybrid Tier 1 Capital in the years 2003 to 2006.

Metrobank has also been steadily expanding internationally. In the late 1990s, Metrobank opened
branches and offices in London, Taichung, Tokyo, and Seoul. Metrobank was the first to be granted a
banking license by the Japanese Ministry of Finance. It was also the first Philippine bank in Korea. In
2001, Metrobank became the first Philippine bank in China when it opened its branch in Shanghai. In
2010, Metrobank inaugurated its wholly-owned subsidiary, Metropolitan Bank (China) Limited, the first
foreign bank headquarters to be established in Nanjing. The new bank serves as the base for Metrobank's
operations in China, with three branches located in Nanjing and Shanghai.

"You're in Good Hands"

Metrobank remains dedicated to fulfilling its vision to be the best bank for all stakeholders – from its
customers to the community. With people dedicated to product quality, service excellence, solid work
ethics, and good governance, Metrobank has established a reputation of stability, strength, and leadership.
It adheres to international best practices, careful strategic planning and prudent decision-making, focused
on further improving earnings quality and increasing shareholder value by constantly reinforcing a
customer-centric strategy built around the commitment of its people.

A recognized leader in the country's banking industry, Metrobank has become regarded as the trusted
banking partner, staying true to its brand promise of "You're in Good Hands."

NBI nabs Metrobank official suspected to be behind fraud

By Xianne Arcangel, CNN Philippines
Updated 03:34 AM PHT Sat, July 22, 2017
74222
Ma. Victoria Lopez is presented by NBI agents on July 17 after allegedly defrauding Metrobank of
nearly ₱1 billion. (FILE PHOTO)

Metro Manila (CNN Philippines, July 21) — The National Bureau of Investigation (NBI) on Friday
said the head of Metrobank's corporate services management falsified documents to defraud a client of at
least ₱900 million.

Maria Victoria Lopez was arrested by the NBI agents on July 17 after she allegedly tried to transfer ₱2.25
million in interest payments for an unauthorized loan.

Norman Aguirre, the NBI agent on the case, said Lopez made two loans worth ₱900 million and ₱850
million on the client's behalf without the latter's knowledge and approval.

"Based on the presentation of the bank, they discovered the anomaly when their employee discovered the
falsified letter directing the bank to issue a manager's check in favor of an individual payee," Aguirre said,
"There were irregularities in the document itself indicating falsification such as different fonts, dubious
signatures, etcetera."

Lopez caught the bank's attention when she directed the issuance of a manager's check to an individual,
which was a red flag because such checks should only be issued to corporate clients.
"The bank conducted an internal inquiry and confirmed that the client has a loan with the bank or if they
have draw-downs against the credit line. Much to their dismay, they discovered such loans are unknown
to the client," Aguirre said.

Lopez, who had worked for Metrobank for over 30 years, has been charged with qualified theft,
falsification, and violation of the General Banking Law.

The NBI said it was conducting a follow-up investigation to determine if Lopez acted with the help of
other people to commit the fraud.

Metrobank said its operations would continue despite the incident, and that no other customers had been
affected.

Meanwhile, the Bankers Association of the Philippines said it was confident that Metrobank would
enforce the remedial measures needed to ensure that a similar incident would not happen again.

AMLC set to probe Metrobank fraud

Regulators want to trace transfers of stolen funds

By: Daxim L. Lucas- Reporter / @daxinq
Philippine Daily Inquirer / 05:18 AM July 24, 2017

INQUIRER FILE PHOTO

Metropolitan Bank and Trust Co. may be subjected to a probe by the Anti-Money Laundering Council
(AMLC) in the aftermath of a massive fraud incident involving anywhere between P900 million and P2.5
billion in illegally disbursed loans orchestrated by a rogue officer.

An investigation by regulators tasked with guarding against the movement of so-called “dirty money” in or
through the local financial system will depend on the findings of the ongoing investigation being conducted
by the Bangko Sentral ng Pilipinas on the country’s second-largest bank.

“There are many questions begging to be answered,” BSP Governor Nestor Espenilla Jr. said when asked
about the focus of the probe, which began last Thursday. “We’ll know soon enough [whether the issue needs
to be elevated to the AMLC] from the [findings of the] investigation.”

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The Inquirer revealed last Friday that Metrobank might have lost as much as P2.5 billion after one of its
officers— corporate services assistant vice president Maria Victoria Lopez—allegedly engineered the illegal
release of loans to a fake account in the name of a corporate client, which she then either withdrew or
remitted outward. A ranking Metrobank official who declined to speak on the record, however, insisted that
an ongoing probe has so far uncovered “only P900 million” in losses to this fraudulent scheme.

Bank sources disclosed to the Inquirer that the scam might have been ongoing since 2012 using bank
accounts illegally opened by the perpetrator or perpetrators—and controlled by them—in the name of an
unwitting corporate client, Universal Robina Corp. (URC).

The sources told the Inquirer than the fraudulent loan releases were made in small tranches, often averaging
“around P30 million each time” to avoid suspicion since the Gokongwei-owned URC had a P25-billion
credit line from Metrobank.

Of particular interest for the BSP in its ongoing probe is the integrity of the George Ty-controlled bank’s
internal controls and the presence or absence of checks and balances that should have detected the scam at
the first instance.

“It’s also possible that existing dormant accounts were used,” Espenilla said about the method by which the
suspected perpetrator or her accomplices, if any, managed to siphon the funds from the bank.
The BSP chief, who also chairs the AMLC, said the elevation of the issue into a money laundering case was
“possible, but not immediately.”

“That can be triggered by BSP referral based on what it finds out,” he said.

Espenilla—who is only entering his fourth week as the country’s chief banking regulator—took the
opportunity to bat for greater powers for authorities to look into bank accounts that are suspected to be
conduits for illegal activities like financial fraud.

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“What is a really clear lesson to draw here is that deposit secrecy laws should go if we want better
surveillance,” he explained.

Read more: http://business.inquirer.net/233763/amlc-set-probe-metrobank-fraud#ixzz56zhPBKpF

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