6 things we know about

RCBC money-laundering
scam
MANILA, Philippines – It has been about 7 weeks since the Philippine government
started its probe into the $81-million bank heist in downtown Manhattan.

But until now, it is still unclear who are liable for the heist and where the stolen money
is.

A lot has happened since the Anti-Money Laundering Council (AMLC) started its probe
on February 19: Bangladesh Bank governor Atiur Rahman and two deputies
resigned; criminal complaints were filed; Rizal Commercial Banking Corporation
(RCBC) president and CEO Lorenzo Tan went on leave; and $4.63 million of the stolen
fund was returned to the AMLC.

For Bangladesh Ambassador to the Philippines John Gomes, the return of $4.63
million from casino junket agent Kam Sin "Kim" Wong on Thursday, March 31, is "a step
in the right direction.”

Bangladesh officials will arrive in the country in the coming days to help the Philippine
government in its probe into the heist and, hopefully, "recover the rest of the amount.”

As the Philippine Senate prepares for its 4th hearing on Tuesday, April 5, here is what
we know about the heist so far:

1. Everyone knows each other

All of those allegedly involved in the transactions of coursing the $81-million stolen
funds through the Philippines know each other in one way or another. (READ: Network:
Who's who in the RCBC money-laundering scam)

The money trail involved RCBC, PhilRem Service Corporation, Solaire Resort and
Casino, Midas Hotel and Resort, and some casino junket operators.

At the Senate probe on Tuesday, March 29, it was discovered that Wong was
acquainted with most of the witnesses called to the hearing.
According to Wong, he knows PhilRem treasurer Michael Bautista, RCBC's Tan, sacked
RCBC Jupiter branch manager Maia Santos-Deguito, Chinese-Filipino businessman
William Go, and car dealer Jason Go.

"You all know each other one way or the other," Senate President Pro Tempore Ralph
Recto said during the last hearing, while questioning PhilRem owners on the flow of
funds through the local financial system.

Wong said he met Deguito and Tan at a party hosted by car dealer Jason Go. He knew
the Bautistas of PhilRem for their love of high-end cars.

2. Stolen funds entered RCBC office twice

The $81-million stolen money from Bangladesh Bank entered RCBC more than
once, but the bank still pushed through with the withdrawals and conversion.
(READ: RCBC money laundering scam mirrors sins of the past)
On February 4, SWIFT Code (MT103) ordered the inward remittance to the Philippines
of $81 million. It then found its way to RCBC.

Per regulations, before any dollar remittance enters the Philippines, it has to pass
through US correspondent banks. In this case, these are Wells Fargo Mellon Bank,
Citibank, and Bank of New York.

From the 3 correspondent banks, the $81 million did not enter the RCBC Jupiter-Makati
branch directly. The money first went through the RCBC Settlement Division, which is
part of the head office.

From there, it was credited to the Jupiter-Makati branch on February 6.

From February 5 to February 13, the stolen funds from Bangladesh Bank were
transferred to remittance company PhilRem.

On February 9, RCBC received a SWIFT code from Bangladesh Bank requesting for a
refund, putting it on hold if the funds had been transferred, or freezing the funds for
proper investigation.

During the Senate probe, PhilRem President Salud Bautista confirmed that her
company went back to the RCBC Treasury to convert a total of $61 million “in different
days."

"So the money went back to RCBC," Recto said during the hearing, which was later
confirmed by Tan.
3. About $17 million still missing

Wong told the Senate that about a quarter of the $81 million stolen from
Bangladesh Bank remained unaccounted for. He said this was still with PhilRem.
Of the stolen money, about $63 million went to Solaire and Midas casinos, while the
remaining $17 million is said to be still with PhilRem – a claim denied by its officers.

4. Part of stolen funds still in casinos

Silverio Benny Tan, the legal chief of Solaire operator Bloomberry Resorts
Corporation, confirmed during the hearing that some P1.36 billion went through
Solaire's gaming tables, a bulk consolidated into the account of "a big-ticket
foreign junket operator" through instructions of Ding Zhize. (READ: Casino junket
operator gives new leads in bank heist)
On March 10, Tan said Solaire froze Ding's accounts, yielding a total of P108.696
million or $2.34 million.

"We are waiting for a proper court order on how to dispose of it," Tan told the Senate.

5. A portion returned to AMLC

Acting as agent for Midas Hotel and Casino, Wong confirmed at the last hearing that his
company, Eastern Hawaii Leisure Company Limited, got hold of P1 billion or $21.575
million of the stolen funds.

Of the P1 billion, Wong took P450 million as Gao's debt payment, while P550 million
went through the gaming tables. He said P510 million of that amount was lost to Midas.

Keeping his promise, Wong turned over to AMLC $4.63 million left under junket
operations on Thursday, March 31.

6. Junket operators act as facilitators

Wong told the Senate panel that casino junket operators Ding Zhize and Gao Shuhua
faciliated the entry of the laundered money into Philippine casinos.

Gao, who Wong had known for about 8 years, had a P450-million debt to Wong after
losing money in casinos in 2014, he said.

Wong said that he knew Ding through Gao who, he said, had "promised" him that he
would bring in more casino players in the Philippines.
"Two foreigners brought the $81 million in the country. One of them has been in and out
of the country and is a popular junket agent and high roller. I will write their names and
put it in a sealed envelope, with a copy of their passport and will submit it to the
committee," Wong told the Senate panel in Filipino.

Wong recalled that on February 5, he received a phone call from Deguito, informing him
that there would be a huge amount of funds that would enter the junket operators'
accounts. (READ: RCBC money-laundering scam mirrors sins of the past)

He said he advised Deguito to send the money to Solaire Resort and Casino in "cold
cash."

Also within the day, Wong said Bautista personally delivered P80 million in cash, while
Deguito brought in about P20 million.

"The first delivery of P90 million was delivered to Weikang Xu who we met at the
casino," Bautista testified at the Senate hearing.

PhilRem then converted part of the $81 million into pesos and delivered the money in
cash tranches to registered casino junket operator Xu, Eastern Hawaii, and Solaire.

At the resumption of the probe into the Bangladesh bank heist on April 5, the Senate
blue ribbon committee plans to unravel more leads that will steer them to the real culprit.

Officials of Bangladesh Bank, and members of the Criminal Investigation Department of

Bangladesh government will visit the AMLC on Monday and attend the fourth Senate
hearing.

The Bangladesh Ambassador to the Philippines said his country is "hopeful that the
entire amount will be recovered." – Rappler.com