PSBank's Garcia is 'seasoned,' 'won't play games,' fellow bankers say
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| Philippine Savings Bank President Pascual "Tito" Garcia |
MANILA, Philippines - Philippine Savings Bank President Pascual "Tito" Garcia surprised some when he took the stand at the trial of Chief Justice Renato Corona, instead of the Katipunan Avenue branch manager most were expecting. He didn't surprise some fellow bankers.
"If he sent the branch manager and he makes a mistake, it's very easy to berate him," the head of another savings bank said in a phone interview. "He probably said he'd do it himself and spare everyone the trouble. It shows the bank considers this important. The president should stand up. I'm not surprised (he did)."
Garcia told the Senate that he took the stand to protect 600,000 depositors and more than 2,000 employees, any of whom might have faced legal action for testifying or refusing to do so.
"I offered myself as an alternative to them because I'm the leader of the bank," he said.
The banker, who declined to be identified, said Garcia is "very seasoned," and started to become well-known in banking circles in the 1990s, when he was the highest-ranking Filipino in the consumer banking side of Citibank-controlled Citytrust in the 1990s, before it was sold to Bank of the Philippine Islands. Garcia went on to head DBS Philippines, a unit of Singapore's DBS, before it too was taken over by BPI in 2001.
He's been president of Metrobank's PSBank since then, and served as president of the Chamber of Thrift Banks in 2009 and 2010.
As head of the association, he looked out for smaller, provincial thrift banks, his fellow banker said.
"One of his things is how to give back, how to help other banks, not just the big ones, the ones in Manila, or the ones that are part of big banks."
The banker said he has called Garcia when dealing with "touchy" issues. "He's very open to share his guidance."
The head of yet another savings bank said: "He's a good guy but being very careful. He is a straight guy and will not play games."


Bank Account Disclosure
Mr. Garcia fall in the entrapment question of JPE. Divulging the existence of a dollar account number even without the attachment of ownership is still illegal. He should have not acknowledge the existence of the dollar account no matter who owns it. Overall he did well.
Did PSBank violate AMLA rules?
There is an Anti-Money Laundering Act (AMLA) that all the banks are supposed to follow, otherwise they themselves are subject to penalties and sanctions.
Did PSBank report the questionable deposits of Corona? He could not have deposited the large amounts without being covered by the AMLA, which are:
Covered transactions are single transactions in cash or other equivalent monetary instrument involving a total amount in excess of Five Hundred Thousand (P500,000) Pesos within one (1) banking day
-the amount involved is not commensurate with the business or financial capacity of the client;
-there is a deviation from the client’s profile/past transactions;
So, did PSBank exercise its functions as required, or did it violate the AMLA and "accommodated" Corona? It was most likely they did the latter. The Senate should look into this.
Did PSBank violate AMLA rules?
There is an Anti-Money Laundering Act (AMLA) that all the banks are supposed to follow, otherwise they themselves are subject to penalties and sanctions.
Did PSBank report the questionable deposits of Corona? He could not have deposited the large amounts without being covered by the AMLA, which are:
Covered transactions are single transactions in cash or other equivalent monetary instrument involving a total amount in excess of Five Hundred Thousand (P500,000) Pesos within one (1) banking day
-the amount involved is not commensurate with the business or financial capacity of the client;
-there is a deviation from the client’s profile/past transactions;
So, did PSBank exercise its functions as required, or did it violate the AMLA and "accommodated" Corona? It was most likely they did the latter. The Senate should look into this.