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MANILA - Documents from the House Committee on Banks and Financial Intermediaries show that the Bangko Sentral ng Pilipinas has cleared the Philippine unit of ING Bank of any liability arising from $5 million worth of losses incurred by a local businessman during the US sub-prime crisis in 2008.
According to the BSP, its Office of Special Investigation found no violation of local investment rules and regulations, as the businessman, Washington Lou, transacted with ING Asia Private Bank Ltd in Singapore, and not with ING Bank Manila.
The BSP said Lou had no outstanding accounts with the Philippine unit, adding that the Bacolod City-based businessman remitted investments to the Singaporean office.
“The amounts allegedly involved in the transactions are certainly not trivial. The values notwithstanding, it is arguably much more important to focus on how the investment was funded. This is relevant to the discussion because it reflects the nature of the transaction and impinges on Anti-Money Laundering Act/know-your-customer concerns,” BSP managing director Johnny Noe Ravalo was quoted in the House documents.
The central bank said ING Bank Asia offered not securities, but services to Lou, thus laying down contractual obligations on either party.
Furthermore, Lou acknowledged signing a waiver that informed him of the risks involved in investing.
Before elevating the matter to the House, Lou had approached at least one local court, but was told to pursue the issue in Singapore.
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