MARIANO MARCOS STATE UNIVERSITY

College of Business, Economics, and Accountancy

BPI suspends employee over possible Wirecard scandal involvement

Corporate Scandal

Agustin, Eva Angelica Loren

Casil, Aloha Nina

Castillo,Cyrille Jem

Patingga,Daicel

Tumamao,Rheyalhane
BSBA MM 2-A

About BPI
 Founded in 1851, Bank of the Philippine Islands is the first bank in the Philippines and in the Southeast
Asian region. BPI is a universal bank and together with its subsidiaries and affiliates, it offers a wide range of
financial products and solutions that serve both retail and corporate clients. BPI's services include consumer
banking and lending, asset management, payments, insurance, securities brokerage and distribution, foreign
exchange, leasing, and corporate and investment banking. The bank has a network of over 800 branches in the
Philippines, Hong Kong and Europe, and close to 3,000 ATMs and CAMs (cash accept machines).
The establishment of BPI, originally known as El Banco Español Filipino de Isabel II, ushered in the
start of the Philippine banking and finance industry. The bank performed many functions, from providing credit
to the National Treasury to printing and issuing currency, making it in effect the country's first Central Bank.
BPI proudly carries on this tradition, financing many private and public sector initiatives and enterprises in
support of economic growth and nation building.
BPI is acknowledged as a leading provider of financial services in the Philippines.

Mission
We nurture every Filipino’s future with a trusted approach to managing money and innovation that
makes life easier every day.

The BPI Credo

We believe our first responsibility is to our CLIENTS.
If we understand and address our clients' financial needs, we will be trusted with their most important financial
transactions, and we will build lasting relationships. We do well when our clients do well.

We believe in our responsibility to our PEOPLE. We seek to hire the best people for each job, provide them
with the means to perform at a high level and reward them fairly. We value integrity, professionalism, and
loyalty. We promote a culture of mutual respect, meritocracy, performance, and teamwork. We strive to be the
employer of choice among Philippine financial institutions.
We believe in our responsibility to our SHAREHOLDERS. We treat capital as a most valuable asset, and seek
to generate superior returns while being prudent in risk taking, spending, and investment.

We believe in our responsibility to our COUNTRY. Our prosperity is greatly dependent on the well-being of
our nation. We aim to be inclusive and responsible in nation building. Through BPI Foundation, we are
committed to the welfare and sustainability of the communities we serve.
Vision
Building a Better Philippines.
Review of Mission and Vision Statements
In the Board strategy session last December 13, 2019, the Board and the senior management committee
reviewed and approved the Bank's mission and vision and strategic plans for the coming years.
Review of the Corporate Strategy
The Board, at its annual Strategic Planning session on December 13, 2019, reviewed and approved the
company's corporate strategy as part of its continued commitment to its duties and responsibilities as stated in
the Manual on Corporate Governance.
Core Values

CUSTOMER SERVICE
Establish friendly relationships with clients, putting them first in our list of priorities, to delight them with our
services, and to always try to anticipate their every need.

EXCELLENCE
Employees, whatever their functions are, should always give their best and continuously upgrade their
knowledge, skills, habits, and attitudes to meet each challenge with determination and drive, opening
themselves to unlimited possibilities.

LOYALTY
To be proud of BPI, to be true to its ideals and vision, and to actively promote and defend what BPI stands for.

TEAMWORK
Build deep and lasting relationships founded on trust and respect, to be totally committed to the achievement of
the objectives of our team and of BPI, to actively participate as one in any undertaking, to contribute our
individual knowledge and talents for the benefit of all.

INTEGRITY
As bankers, we should be worthy of the confidence put in us by BPI and the society it stands for, earn the trust
of those we meet and interact with, and always do what is morally, and socially correct, contributing in our
small way in shaping the future.

CONCERN FOR PEOPLE

Employees should be genuinely interested in people, to help others in every way possible, to contribute to a
sound environment, to be fair, supportive, friendly, caring, and sincere in our relations with the people we meet.

BPI Wirecard Scandal Involvement Story

The Bank of the Philippines has suspended one of their assistant managers that may have played a part
in the preparation of falsified documents vouched for the existence of a trust account of German firm Wirecard
AG in the country. On June 22, Monday, a disclosure to the Philippine Stock Exchange, the BPI said it is
probing falsified document that wirecard is supposedly a client of the bank. BPI said Ernst & Young, Wirecard's
auditor, showed documents which claimed that the German firm was a client. Wirecard, which has been tagged
for supposed fraud in 2019, announced last week that it has lost track of 1.9 billion euros (about ₱107 billion)
worth of cash, as its external auditor Ernst & Young Germany could not find the trust accounts which were
supposed to hold the money.
International media outlets earlier reported that Wirecard was missing some $2.1 billion. Reports also
noted that the firm inflated revenues through forged and backdated contracts. On Monday, auditors concluded
that the missing funds likely "do not exist," fueling fraud suspicions. The company added it is exploring
sustainable financing now that its loan contracts are in limbo.
BDO Unibank earlier denied that Wirecard is a client, adding that documents showing otherwise had
falsified signatures of officers. BPI and BDO Unibank, Inc. both denied last week that they had a business
relationship with the German payments company, adding they did not hold any of missing money. Both
reported the incident to the Bangko Sentral ng Pilipinas.
Last week, BDO said it sacked a marketing officer for fabricating a bank certificate issued to EY
Germany, which carried forged signatures of bank officers to assure the existence of Wirecard's supposed trust
account. BPI also said a similar document presented to the bank by Wirecard's auditor was bogus.
 Governor Benjamin Diokno said Sunday that the billions of cash never entered the Philippine financial
system and the incident did not cause any losses to the two banks. The central bank is doing its own probe into
the incident, but Diokno said it appears that BDO and BPI were only tagged in the incident as an attempt to
"cover the perpetrators' track."
The amount is said to be worth one-fourth of the company's consolidated balance sheet. Failure to trace
where the amounts are will allow about 2 billion euros worth of loans to Wirecard AG to be terminated.
Wirecard's long-time CEO Markus Braun resigned Friday amid the controversy, with Dr. James Freis,
Jr. stepping in as interim CEO.
BPI shares rose by 0.55 percent to ₱73 apiece on Monday, the first trading day after the Wirecard
scandal came to light. Meanwhile, BDO stocks went down 1 percent to ₱99 each. 

Nature of the Corporate Scandal

The central bank has banned two bankers who issued fake documents that contributed to the $2.1-billion
(about Php 104 billion) Wirecard scandal.
Covered an employee of BDO Unibank and another from the Bank of the Philippine islands who were
found to have falsified bank certificates to the German firm’s auditor about a supposed trust account holding
Wirecard’s money, Bangko Sentral ng Pilipinas Governor Benjamin Diokno sai Thursday.
“The BSP has completed the process for disqualification and inclusion in the BFP’s watch list of the
names of those involved in the falsification of documents. As a result, these people will be disqualifies from
entering the banking system,” Diokno said ion a media briefing.

Who are involved?

Perpetrators of a scandal involving Germany-based digital financial technology leader Wirecard AG are
only using the names of two of the country’s largest lenders to cover their tracks as none of the missing $2.1
billion entered the Philippine financial system.
Wirecard AG, a public company listed on the German Stock exchange (DAX) allegedly used the names
of the country’s largest lenders to cover their tracks.
Markus Braun, CHIEF Executive Officer of Wirecard AG, who earned his billions from Wirecard,
resigned from the company after leading it for almost 20 years.
Ernst & Young (EY) Germany, responsible for checking accounts at the disgraced electronic payments
company Wirecard.
Nestor Tan, President and Chief Executive Officer of BDO Unibank Inc., said his bank was used and is
not a party in the Wirecard scandal, He added that “Wirecard is not a client. The document claiming the
existence of a Wirecard account with BDO is a falsified document and carries forged signatures of bank
officers.”

How BPI resolved?

The Bank of the Philippine Islands (BPI) has suspended an employee currently under investigation for
the supposed falsification of documents purporting the company's relation to embattled Wirecard AG.
According to BPI, Wirecard's auditor Ernst & Young presented documents to the bank claiming that the
scandal-hit firm was a client. Such documents have already been found to be falsified.
 "The employee who may have played a part in the preparation of the said document has been suspended
and is under investigation," the disclosure read.
"The Bank has reported this matter to the Bangko Sentral ng Pilipinas (BSP)," it added.
Philippine banks are further tightening procedures after two of the country’s lar-gest lenders were
dragged into the reported $2.1 billion missing funds of German financial technology leader Wirecard AG.
Cezar Consing, president and chief operating officer at BPI, said they are strengthening policies and
programs that encourage good conduct and discourage bad process  after the Ayala-led bank was dragged into
the accounting scandal.
“Our processes and procedures in connection with the issuance of banking certifications are very
stringent. Thus, we can readily detect when certificates are spurious, as was the case with Wirecard,” Consing
said.
Consing, who is also president of the Bankers Association of the Philippine (BAP), said  BPI  has
already  terminated a  junior officer who was earlier placed on preventive suspension for allegedly issuing the
fraudulent document.
“This was a case of bad conduct on the part of a very junior officer who has since been terminated,”
Consing said.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno has directed banks to strengthen their know-
your-customer protocols as well as their compliance and internal audit functions to assess the behaviors of
employees and financial transactions.
Diokno, who also chairs the Anti-Money Laundering Council (AMLC), earlier said none of the missing
$2.1 billion entered the Philippine financial system.
Banks are mandated to submit suspicious transaction reports (STRs) to the AMLC for transactions
exceeding P500,000 as such amount triggers the filing of a covered transaction report.
Mel Georgie Racela, executive director of the AMLC Secretariat, said the body would focus on the
money laundering aspect of the investigation, while the Department of Justice (DOJ) and the National Bureau
of Investigation (NBI) would look into other offenses.
The Anti-Money Laundering Act of 2001 (AMLA), as amended, mandates the AMLC to make sure that
the Philippines is not used as a money laundering site for the proceeds of any unlawful act.
Justice Secretary Menardo Guevarra announced  Wednesday that the NBI and the AMLC would look into
“certain individuals” because of transactions that showed “monies entered the local account of a person in the
Philippines who has links with Wirecard.
The NBI has summoned former Department of Transportation assistant secretary Mark Tolentino to
shed light on his alleged involvement in the Wirecard scandal.
Tolentino through his law firm M.K Tolentino Law and Business Consultancy Office reportedly served
as trustee of the Wirecard accounts.
References

https://www.msn.com/en-ph/money/topstories/bpi-suspends-investigating-employee-for-possible-
involvement-in-falsified-documents-linked-to-wirecard-scandal/ar-BB15Ou2g

https://www.philstar.com/business/2020/06/28/2024152/banks-tighten-processes-amid-wirecard-scandal

https://www.rappler.com/business/bpi-suspends-employee-possible-wirecard-scandal-involvement

https://www.cnnphilippines.com/business/2020/6/22/BPI-suspends-assistant-manager-Wirecard-
scandal.html

https://www.philstar.com/business/2020/06/22/2022531/bsp-wirecard-scammers-using-bdo-bpi-cover-up

https://www.esquiremag.ph/money/capital/wirecard-explained-a00304-20200622-lfrm

https://www.esquiremag.ph/money/capital/wirecard-explained-a00304-20200622-lfrm

https://www.rappler.com/business/auditor-ey-facing-probe-wirecard-scandal-germany-december-4-2020

https://www.philstar.com/business/2020/06/22/2022531/bsp-wirecard-scammers-using-bdo-bpi-cover-up