Metropolitan Bank and Trust Co.

(Metrobank), the country’s second largest bank, on Friday

assured its customers that the fraudulent transactions of an officer did not affect a single client
of theirs.

“No customer has been affected in this incident,” the bank said in a statement, referring to
reports of a P900-million bank fraud perpetrated by a Metrobank officer. “In the context of the
bank’s P1.9-trillion financial resources, rest assured that we continue to operate business as
usual for the bank and our customers,” the bank said, adding that it “cannot further comment
on the case as it has already been filed.”

The Ty-controlled Metrobank did not identify the bank officer but the National Bureau of
Investigation (NBI), in a press conference, identified the suspect as Maria Victoria Lopez,
Metrobank’s vice president for corporate services. She is now in the custody of the NBI.

Lopez was held for qualified theft and falsification of documents for her alleged involvement in
a scam that diverted between P900 million and P2.5 billion in bank funds to a private account.
(Czar Dancel | Manila Bulletin)

“Even as Metrobank continues to conduct an internal investigation on the matter, we would

like to assure everyone that URC will not incur any financial loss whatsoever and that the
integrity and security of URC and its active accounts at Metrobank remain unaffected by the
said incident,” URC stated.

“This is an isolated case. The banking system is well-capitalized. Metrobank is a big bank,” said
Fonacier. “It can handle the situation. It is unfortunate that this thing happened. On the part of
the BSP, we have to establish the facts and determine what needs to be done.”

The BAP said the incident was “quite unfortunate” but remarked that banks have established
internal controls and systems and instituted separation of functions to help prevent crimes.
“Together with the BSP, we agree that Metrobank, the second largest banking institution in the
country (with P1.9 trillion of assets) will quickly enforce the necessary remedial measures and
policies required to prevent such incidents from happening again.” Metrobank has over 900
branches and in the first quarter, it reported a net income of P5.6 billion, up six percent year-
on-year.

Espenilla has always said that the banking system is resilient with a strong capital base. He does
recognize that when it comes to internal control framework, there is no one size that will fit all.
Banks are expected to adopt internal control frameworks that are suited to their size, risk
profile and complexity of operations.

 In cases of bank fraud, the central bank can file its own prosecution suit of an erring bank
employee for violating BSP regulations such as falsification of documents and for reporting false
statements to the BSP.
Fraudulent loans which are still reported as part of a bank’s total loan portfolio are submitted
under the consolidated statements of condition, and the falsification of these documents when
reporting to the BSP is a criminal offense. Sanctions will be imposed on a bank, or its directors
and officers, if proven that they committed an error or went against BSP regulations. (With a
report from Jeffrey G. Damicog)

123What makes this bank the second largest? Where then is their motto "you're in good hands
with Metrobank"?

Metropolitan Bank and Trust Co. (Metrobank), the country’s second-largest bank, has been hit by
internal fraud that a senior official allegedly perpetrated, causing it to lose at least P900 million.

The Inquirer learned that Metrobank, owned and controlled by George Ty, may have lost as much
as P2.5 billion after a bank vice president allegedly funneled disbursed loans into fictitious
accounts created in the name of a legitimate client, Universal Robina Corp.

The funds in the fake accounts, controlled by the rogue officer, were then siphoned off
electronically to other accounts in other financial institutions and into the pockets of the suspect.

An internal investigation has yet to determine whether the officer was acting alone or in league
with others.

This prompted Governor Nestor Espenilla Jr. of the Bangko Sentral ng Pilipinas (BSP) to launch a
probe to determine how a single official was able to circumvent the bank’s internal controls to
commit “qualified theft.”

“We are going to investigate this matter, that you can be sure of,” said the BSP chief, who is three
weeks into his six-year term as the country’s chief banking regulator.

The BSP immediately mobilized its examiners and auditors to pore over Metrobank’s records.

Metrobank is expected to file charges against her next week.

Another banker, who was familiar with the details of the scam, told the Inquirer that the suspect
engineered false loan disbursements from Metrobank to the fake Universal Robina account “in
tranches of P30 million.”
“She or they did this over a long period for P30 million disbursements to reach a total of P2.5
billion,” the banker said. “How far back? That’s what they’re trying to figure out right now.”

Metrobank, a publicly listed company, had P1.9 trillion in assets as of the first quarter of 2017. It
earned P6.21 billion from January to March.

Metrobank had 959 domestic branches and 202 foreign branches, offices and subsidiaries last
year. —WITH A REPORT FROM INQUIRER RESEARCH

The bank did not confirm how much was stolen or the time-frame of the fraud, but stressed it
did not affect its customers.

Metrobank pointed out that it is "reinforcing its commitment to the highest standards of
integrity and upholds the protection of its customers as its main priority. No customer has been
affected in this incident."

“In the context of the Bank's P1.9 trillion financial resources, rest assured that we continue to
operate business as usual for the bank and our customers. The Bank cannot further comment
on the case as it has already been filed,” it added.

The Philippine Daily Inquirer earlier reported that Metrobank had been hit by a multimillion-
peso case of internal fraud involving a bank officer who had funneled at least P900 million into
a fictitious Universal Robina Corporation (URC) account and then channeled the cash to other
bank accounts.

The report said the amount involved could reach P2.5 billion.

NBI officials said on Friday while the period covered by the fraud has yet to be determined, it's
possible that it was carried out over a long period of time.

MANILA, Philippines – The executives of the Metropolitan Bank and Trust Company

(Metrobank), Anti-Money Laundering Council (AMLC), and Bangko Sentral ng Pilipinas (BSP) will
face the Senate committee on banks, financial institutions, and currencies after a former senior
official of Metrobank allegedly committed internal fraud involving P900 million to P2.5 billion.

Senator Francis Escudero, the committee chairman, said in a statement on Tuesday, July 25,
that the panel will not yet launch an investigation and would like to see first how the inquiry
being conducted by Metrobank along with the National Bureau of Investigation (NBI) will turn
out.
Instead, Escudero will call the officials of Metrobank, AMLC, and the BSP to a meeting for the
Senate committee to be informed about the developments of the case and determine if there
are loopholes in the safety mechanisms and procedures for banks. (READ: Metrobank loses
over P14B in market value amid fraud issue)

"I want to be enlightened and I want to hear it straight from Metrobank. I want to know how
the bank executive was able to commit such a massive scale of fraud even with the bank's
internal control and checks and balances," Escudero said.

According to the NBI, Lopez supposedly fabricated documents and facilitated the disbursement
of loans into fake accounts under the name of one of their corporate clients, the Gokongwei-
led Universal Robina Corporation (URC).

Through the P25-billion credit line of URC, Lopez was able to process loans amounting to P900
million and P850 million.

According to reports, the suspect was able to release the loans "in tranches of P30 million" for
the bank to have lost as much as P2.5 billion.

Meanwhile, the Gokongwei-led URC said in a separate disclosure last week that it would not be
affected financially by the fraud.

"So what we want to know now is how often the audit happens, from the side of the BSP and
the bank itself. How come the bank did not detect what was going on at the early onset?"
Escudero asked.

Metrobank and the NBI are also looking into the possibility that the suspect connived with
other bank employees in committing the fraudulent transactions.

METROBANK SHARES FALL

Shares in Metrobank dropped by 5.03% to P86.90 on Friday, coming from P91.50 apiece the
previous day.

In a disclosure, Metrobank assured that the bank will continue with its day-to-day operations.

“The Bank is reinforcing its commitment to the highest standards of integrity and upholds the
protection of its customers as its main priority. No customer has been affected in this incident,”
the George S.K. Ty-owned lender told the local bourse.

“In the context of the Bank’s P1.9 trillion financial resources, rest assured that we continue to
operate business as usual for the bank and our customers.”
Metrobank is the Philippines’ second-biggest bank in asset terms and controls P1.9 trillion
worth of resources. It raked in P18.1 billion in net income last year, and P5.6 billion during the
first three months of 2017.

In a separate statement, URC said it will keep its business deals with Metrobank despite the
case, after bank president Fabian S. Dee assured that the conglomerate’s accounts would not
be affected.

The Gokongwei-led firm said URC would not incur any losses while active bank accounts will be
kept intact.

For its part, the Bankers Association of the Philippines said it is “confident” that Metrobank will
be able to resolve the issue: “This appears to be an isolated incident and we are confident the
facts will arise from the ongoing investigations being carried out by both Metrobank and the
Bangko Sentral ng Pilipinas.”

Metrobank’s corporate management head Maria Victoria Lopez has been charged with a
complaint for qualified theft, falsification and violation of the General Banking Law.

123 The details as explained by the NBI are so sketchy. Who signed the loan document if it was
fictitious? Who were the supposed signers on the document? Who approved the loans besides
the VP? Were funds released as proceeds of the 2 loans? Who received it? Why would the
debtor/s be paying this officer the supposed interest?

123 the NBI or the reporter probably don't fully understand the bank process and procedure
could fully comprehend the complexities of how the crime was committed.,,,,,,as to who
approved the loan/credit facilities, its should be the bank's Executive Committee or even with
the approval of the Board of Directors considering that its a 2.5B loan credit facility. As to who
receive the loan proceeds, the amount was/were credited/deposited to the fictitious account of
Robina Corp.

123 I can't log in to the metro bank app! A red box pops up saying there's an error. I can access
or see any of my information.

123 Metro bank app not working all day. When I click to go into the full account a red message
comes up saying there's an error and the screen is blank. I can see what's in my accounts but
not what's gone in or out
123 There are still issues, I think. I was having problems a few days back like a lot of people and
couldn't log in to my personal account - I can today, but it's not letting me transfer money
between my accounts, or even schedule the transfer for another day.
123 This is poor service from Metro Bank. Says contact Card issuer. contact them and they cant
access your account details, due to systems being down. can apparently be down for couple
hours. just have to wait.
123 Same here, I can't login or use my card - the phone lines are busy!

123 I have been unable to transfer money from my account for the past WEEK. I have
telephoned numerous times but with no result, only endless excuses. And no word of when the
"IT issue" will be resolved.... no answer from the bank...
 Unable to transfer money online for over an hour now.
I am unable to get money out, use online service or even get money out from the bank itself

Bank executive arrested over P900-M Metrobank fraud Friday, July 21, 2017 By KEITH A.
CALAYAG A SENIOR official of the Metropolitan Bank and Trust Co. (Metrobank) suspected of
orchestrating an elaborate fraud scheme to embezzle millions of pesos from the second largest
bank in the country was arrested by the National Bureau of Investigation (NBI) last July 17. In a
statement released by Metrobank on Friday, July 21, it said that the authorities have already
arrested last Monday the alleged mastermind of the P900-million internal fraud. NBI sources
identified the suspect as Maria Victoria Lopez, vice president of the corporate services unit in
Metrobank's Makati City head office. The Metrobank assured the public that none of its clients
have been affected by the incident that may have lost as much as P2.5 billion. "The bank is
reinforcing its commitments to the highest standard of integrity and upholds the protection of
its customers as its main priority," it said. "No customer has been affected by this incident. In
the context of the bank's P1.9 trillion financial resources rest assured that we continue to
operate business as usual for the bank and our customers," it added. The management also said
it cannot comment further as the case has already been filed against Lopez. Lopez, 54, now
detained at the NBI headquarters in Manila, was accused of funneling loans into fake accounts
in the name of a legitimate client, Universal Robina Corporation. The funds allegedly went to
other accounts and financial institutions controlled by Lopez. Banko Sentral ng Pilipinas
Governor Nestor Espenilla in a statement said they will look into the issue, particularly on how a
sole official was able to rob such a huge amount from the bank. Espenilla also said they will look
into the adequacy of the controls being used by banks in the country to prevent electronic
fraud. "Our banks have their natural internal controls precisely to prevent these things from
happening," he said. "So we will have to look into the adequacy of those controls if in fact, a
significant crime happened within the bank," he added. Espenilla said "no system is perfect" but
believes that Metrobank is resilient to such issues. (SunStar Philippines)

Read more: http://www.sunstar.com.ph/manila/local-news/2017/07/21/bank-executive-
arrested-over-p900-m-metrobank-fraud-554153
Follow us: @sunstaronline on Twitter | SunStar Philippines on Facebook

Metro Manila (CNN Philippines, July 21) — The National Bureau of Investigation (NBI) on
Friday said the head of Metrobank's corporate services management falsified documents to
defraud a client of at least ₱900 million.

Maria Victoria Lopez was arrested by the NBI agents on July 17 after she allegedly tried to
transfer ₱2.25 million in interest payments for an unauthorized loan.

Norman Aguirre, the NBI agent on the case, said Lopez made two loans worth ₱900 million and
₱850 million on the client's behalf without the latter's knowledge and approval.

"Based on the presentation of the bank, they discovered the anomaly when their employee
discovered the falsified letter directing the bank to issue a manager's check in favor of an
individual payee," Aguirre said, "There were irregularities in the document itself indicating
falsification such as different fonts, dubious signatures, etcetera."

Lopez caught the bank's attention when she directed the issuance of a manager's check to an
individual, which was a red flag because such checks should only be issued to corporate clients.

"The bank conducted an internal inquiry and confirmed that the client has a loan with the bank
or if they have draw-downs against the credit line. Much to their dismay, they discovered such
loans are unknown to the client," Aguirre said.

Lopez, who had worked for Metrobank for over 30 years, has been charged with qualified theft,
falsification, and violation of the General Banking Law.

The NBI said it was conducting a follow-up investigation to determine if Lopez acted with the
help of other people to commit the fraud.

Metrobank said its operations would continue despite the incident, and that no other
customers had been affected.
Meanwhile, the Bankers Association of the Philippines said it was confident that Metrobank
would enforce the remedial measures needed to ensure that a similar incident would not
happen again.