Rural Banks deny involvement in Jueteng operations

The Rural Bankers Association of the Philippines has issued a statement categorically denying the involvement of the industry in illegal jueteng operations. It further said that former Archbishop turned Anti-illegal gambling crusader Oscar Cruz has been making general statements that are so far unsubstantiated according to RBAP Executive Director Vincent Mendoza who further added that Rural Banks are at the forefront of countryside development and are strictly monitored by the BSP, PDIC and the Anti-Money Laundering Council (AMLAC).

Rural Banks have recently been strengthening their risk management systems, product portfolios and capitalization as prescribed by the BSP and under an environment of mergers and consolidations. In working within these guidelines and rules, it would be impossible to digress from them even slightly, most specially, as involvement with jueteng would deal in large cash deposits. Cash deposits are closely monitored by both the bank management and regulators to ensure that the depositors are legitimate Mendoza added. There is no room for laxity when it comes to operations of Rural Banks and we operate much like the big commercial banks, only at a smaller scale with a niche client base and niche products. The BSP also prescribes the KYC or Know Your Clients program that encourages Rural Banks to know first-hand who their clients are and their businesses.

The strict guidelines that govern the operations of Rural Banks include the submission of regular reports of covered transactions and suspicious transactions. These are prescribed in the AMLA Law of 2001 or RA 9160 as amended by RA 9194 that Rural Banks follow under penalty of law.

Under these strict guidelines, it would be too tedious for jueteng operators to use Rural Banks for their money laundering operations. And Rural Bank owners are very well aware of the penalties involved in even accommodating so called jueteng money into their respective banks Mendoza said.

Rural banks are found extensively in local municipalities across all the Philippine Provinces, as mandated by law in order to serve the countryside communities and promote rural development. There are 600 Rural Banks nationwide with a total network of over 2,100 branches.