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October 06, 2022

UnionBank sees no hit from BSP sanctions

Union Bank of the Philippines headed by bankero Edwin Bautista sees no hit from the sanctions imposed by the Bangko Sentral ng Pilipinas (BSP) due to the Mark Nagoyo hacking incident last December.

The Aboitiz-led bank said in a disclosure to the Philippine Stock Exchange (PSE) that no monetary sanctions were imposed by the central bank on the listed bank.

“There is no material impact on the business, financial conditions or the operations of UnionBank. Lastly, the examination and investigation of the BSP has been concluded,” the bank said.

The central bank’s Monetary Board approved the imposition of sanctions on the Sy-led BDO Uniobank Inc. led by bankero Nestor Tan and UnionBank to ensure that both banks would swiftly address the issues the regulator noted.

“This incident is a reminder that we should continue to enhance our defenses against cyber threat actors to protect the integrity of the financial system and the interests of depositors,” outgoing BSP Governor Benjamin Diokno said earlier.

The investigation conducted by the BSP recognized the corrective actions undertaken by both banks related to the cyber incident, including reimbursement by BDO of its affected clients.

The sanctions imposed emphasize the importance of continuously enhancing risk management systems involving cyber security, anti-money laundering, and combating terrorism and proliferation financing.

The sanctions also reinforce the need for banks to take a proactive stance in ensuring that their depositors are adequately protected.

BDO immediately reimbursed over 700 clients who were victimized by illegal electronic fund transfers to an account in UnionBank reportedly owned by a certain Mark Nagoyo.

On the other hand, UnionBank immediately froze several accounts and identified at least six personalities behind the hacking incident.

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