Incoming Bangko Sentral Governor Nestor Espenilla Jr. on Tuesday vowed to prevent the entry of dirty money in the financial system and cited the need to expand the anti-money laundering law.
Espenilla, who was named by President Rodrigo Duterte as the successor of Governor Amando Tetangco Jr., said the relaxation of the deposit secrecy law would be another challenge he would face once he assumed the top BSP post.
“The expansion of the anti-money laundering law, including casinos, is one of the biggest challenges,” Espenilla, who currently serves as deputy governor for bank supervision and examination sector, said in a news briefing Tuesday, a day after he was named by Duterte as the next BSP head.
Espenilla said expanding the anti-money laundering law would result in a more secure financial system.
“It is BSP’s job to make sure that that the banking system is secure and prevent the entry of illegal funds in the financial system,” Espenilla said.
Cyber thieves stole $81 million from the account of Bank of Bangladesh in Federal Reserve in New York in February last year.
“The BSP has a critical role to prevent the entry of dirty funds in the country,” Espenilla said.
Banking executives on Tuesday welcomed the appointment of Espenilla, saying this would ensure that policy reforms implemented under the 12-year watch of Tetangco would continue.
Bankers Association of the Philippines president Nestor Tan, who is also the president and chief executive of BDO Unibank Inc., the largest bank in the country, said in a statement Espenilla was “a good appointment” and he is “very capable and he represents continuity.”
Philippine National Bank executive vice president Horacio Cebrero said among the equally qualified candidates for the BSP top post, Espenilla would provide continuity for the excellent monetary policies that was put into place by Tetangco.
“That is needed in the type of market dynamics brought about by developments in both the domestic and international markets. His long experience with the BSP and direct involvement in policy matters are welcomed positively by the markets,” Cebrero said.
“We are sure that DG Espenilla will bring the BSP to the next level that they have placed in their vision,” Cebrero said.
Security Bank Corp. president and chief executive Alfonso Salcedo Jr. said Espenilla’s appointment was a “good choice” while East West Banking Corp. vice chairman Antonio Moncupa Jr.–one of the contenders for the BSP governorship”•said Espenilla’s appointment “would do the country good.”
Union Bank of the Philippines president and chief operating officer Edwin Bautista said “we are in good hands.”
“We expect Gov. Espenilla to continue the reforms he has championed these past years,” Bautista said.
ING Bank Manila senior economist Joey Cuyegkeng said Espenilla’s appointment also demonstrated President Rodrigo Duterte’s confidence with and trust on his economic team.
“Overall the decision is positive not only for the monetary system but for the economy – continuity and progress and display of President’s preference and disposition to economic expertise [and his economic team],” Cuyegkeng said.
Meanwhile, Japanese financial firm Nomura said Espenilla’s leadership would continue to adhere strictly to its inflation-targeting framework.
Espenilla said he would also push for the amendment of the BSP charter, which is currently pending in Congress, and make sure that the banking system would be an effective agent for financial inclusion.
Espenilla said Duterte did not give him a specific mandate, adding the meeting on Monday was the “first opportunity to have a close interaction with the president.”
