Philippines: BPI, Other Banks Under Review, Linked to AU Money Laundering

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The Bank of the Philippines Islands (BPI) and 10 other financial institutions are currently going through scrutiny for allegations that they have link Westpac money laundering scheme in Australia. Westpac entered an agreement in with BPI in 2016 to be providing the LitePay services to customers in the country. Following Westpac ‘s failure to provide reports of the over 19.5 million funds transfer instructions both in and out of Philippines, and the possibility that the fund is linked with child exploitation, the BPI withdrew its remittance and partnership with Westpac since November 24, 2019.

The central bank of Philippine said it has identified other recipients of the remittance from Australia and is currently reviewing them to find out if banks are in compliance with the antimony laundering regulations. The Deputy Governor for Financial Supervision of the BSP, ChuchiFonacier had stated that the issue involves small transactions, but broadly, the money involved is likely acquired through illegal activities. However, the names of the banks involved are still withheld.