BSP probes large cash flows potentially linked to flood control scandal

The Bangko Sentral ng Pilipinas (BSP) is investigating unusually large cash flows potentially connected to the flood control corruption scandal.

BSP Deputy Governor Lyn Javier stated that the central bank is closely scrutinizing potential weaknesses in banks' anti-money laundering frameworks, including customer due diligence, transaction monitoring, and reporting obligations.

The BSP is determining the vulnerabilities of concerned banks in relation to transactions involving the flood control projects and will decisively address any deficiencies found.

Land Bank of the Philippines (LandBank) announced it would conduct its own probe into large-value transactions previously flagged by lawmakers, while asserting adherence to regulatory procedures.

BSP Governor Eli Remolona Jr. had previously expressed shock at the alleged scale of the corruption and the sheer volume of cash involved, noting many flagged transactions were processed through government-owned financial institutions.

The BSP is working to make it more difficult for those involved in the scandal to take money out of banks.