After completing its investigations on the digital fraud incident involving a certain “Mark Nagoyo” last December, the Bangko Central ng Pilipinas (BSP) announced the decision of the Monetary Board to sanction BDO Unibank, Inc. and UnionBank of the Philippines “to ensure that both banks will swiftly address the issues” raised by the central bank. To recall, unauthorized access to a number of BDO accounts reportedly came from a compromised web service, accompanied by fund transfers mostly made through UnionBank accounts.
“The sanctions imposed emphasize the importance of continuously enhancing risk management systems involving cybersecurity, anti-money laundering, and combating terrorism and proliferation financing,” the BSP explained.
According to BSP Governor Benjamin Diokno, the incident reminds that “we should continue to enhance our defenses against cyberthreat actors to protect the integrity of the financial system and the interests of depositors.”
Meanwhile, UnionBank President and CEO Edwin R. Bautista said the BSP did not impose monetary penalties.
“All the recommendations of BSP to avoid such incidents have been implemented. No monetary penalties. But we were asked to increase our capital charge against operations risk,” Bautista said in a text message to BusinessWorld.
On the other hand, BDO President and CEO Nestor V. Tan indicated that the bank shall comply with the sanctions.
“We will work with the BSP to ensure a more secure banking environment,” he told BusinessWorld via Viber.
Earlier, the Bankers Association of the Philippines (BAP) commended the arrest of the perpetrators.
“We thank the National Bureau of Investigation (NBI) and the Department of Justice (DOJ) for their successful collaboration in holding cybercriminals accountable for what they have done,” BAP President Jose Arnulfo Veloso said.
As long as BDO Management doesnt change their Terms of Contract when you signup for a new account they will continue to loose the very valuable trust of the PUBLIC regarding the clause that states IN THE EVENT that the DEPOSITOR or ACCOUNT OWNER / HOLDER passed away or died (in any circumstances), what ever money or monetary assets that the account owner have deposited in BDO will not be able to claim by any relatives of the deceased even if the claimant is the lawful wife or biological parents or any closest relatives of the said account owner and therefore all his money or monetary assets will now become part of BDO’s management. This clause in the Terms of Contract is illegal and many people are against it, that is why untill now a lot of people are hesitant against BDO banking services and products and YET THEY CONTINUE TO IMPLEMENT IT which the management of BDO are liable for breaking the law regarding the BSP Rules. I hope the BDO and Banko Sentral ng Pilipinas and other members of the Congress are reading this in order to protect the Public against unfair banking practices of BDO and other Financial institution that implements such terms.