Diokno: Westpac transactions with Philippine banks 'very small'

Cathy Yang, ABS-CBN News

Posted at Dec 20 2019 01:47 PM | Updated as of Dec 20 2019 03:20 PM

Bangko Sentral ng Pilipinas Governor Benjamin Diokno answers questions during the unveiling of the 20-piso coin at the Executive Business Center at the Bangko Sentral ng Pilipinas, (BSP) in Manila on December 17, 2019. Jonathan Cellona, ABS-CBN News

MANILA -- Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Friday dealings between Filipino banks and one of Australia's largest lenders that is under investigation for money laundering will not have a large impact on the local financial system.

Only "very small" amounts were transacted between Westpac and 10 Filipino banks, including Bank of the Philippine Islands, Diokno said in an exclusive interview with ANC.

"I don't think it will have any large impact on the financial system, we just want to make sure we get a handle of what is going on," Diokno said.

"These are small transactions, I understand," Diokno said. Pressed if it posed a systemic risk, he said: "No. As I said, these are very small transactions."

The Bangko Sentral is coordinating with Australia while BPI and the 9 other banks are coordinating with the BSP, Diokno said. The Ayala-owned lender is the largest of the 10 banks that is being reviewed by the central bank, he said.


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Earlier, BPI said it terminated its remittance partnership with Westpac in November, as soon as news of the money laundering investigation broke.