RCBC president and CEO resigns in wake of money laundering scandal

Rizal Commercial Banking Corp. (RCBC) on Friday accepted the resignation of Lorenzo V. Tan, its president and chief executive officer.

The resignation took effect on May 6, the bank said.

RCBC noted Tan was cleared of any breach of bank rules and policies after an investigation into the alleged $81-million money laundering scheme.

In a statement, RCBC said an investigation by external lawyers and SGV&Co. gave Tan a clean slate in terms of any knowledge, involvement or participation in the unauthorized transfer to RCBC of $81 million stolen from the Bangladesh Bank account at the Federal Reserve Bank of New York.

“As shown by RCBC’s own investigation, the allegations of my involvement in the current money-laundering issue are unfounded and baseless.” Tan said in a separate statement.

“Despite my resignation, however, I am committed to help uncover the truth, not only to clear my name but also to bring justice to the Bangladeshi people," he added.

Implicated by Deguito

"Tan led the bank towards unprecedented growth," according to RCBC. "Since his entry as president and CEO in early 2007, RCBC grew from 800,000 to 7.32 million customers; from 294 to 475 branches; from 257 to 1,405 ATMs; and from a balance sheet of P224 billion in 2006 to P488 billion in assets as of March 2016."

Until a permanent replacement is announced, Helen Y. Dee will oversee the bank’s operations, as president and CEO, supported by a management team composed of RCBC Vice-Chairman Cesar EA Virata and Director Armando Medina and the current group of senior managers.

RCBC Jupiter branch manager Maia Santos-Deguito testified before the Senate blue ribbon committee that Tan was aware of the transactions involving the $81 million.

The bulk of the stolen funds went into four fictitious accounts in the Jupiter branch in Makati City, before the money was transfered to casinos and junket operators.

Tan filed libel charges against Deguito and her lawyer Ferdinand Topacio for implicating him in the money laundering scheme.

Deguito and her assistant Angela Torres were fired by RCBC for falsification of documents and breach of bank's rules and policies. – Ted Cordero/VDS, GMA News