Thursday, 22 June 2017

On 05:58 by admin   No comments
THE report on unauthorized transactions involving Bank of the Philippine Islands (BPI) accounts two weeks ago will be completed by next month, but the Bangko Sentral ng Pilipinas (BSP) said preliminary findings showed the incident was a result of human error, not hacking.
“We conducted our investigation on BPI incident. It isn’t complete yet, but I can say there was no hacking …
This is human error,” said Chuchi Fonacier, BSP assistant governor for the Supervision and Examination Sub-Sector, told Senators during the hearing on the matter by the Senate Committee on Banks, Financial Institutions and Currencies on Wednesday in Pasay City.
The BSP finding is consistent with the testimony of BPI officials during the same hearing.
“We also informed our regulators that there was no breach of data privacy … An error in judgment on the part of one of or more programmers led to an unscheduled fire generation, causing us to post wrong entries,” BPI President and Chief Executive Officer Cezar Consing said.
For two days starting June 7, BPI disabled its online and automated teller machine (ATM) network to rectify an internal error that double-posted transactions made between April 27 and May 2.
The country’s oldest and third largest bank has more than 800 branches and 3,000 automated teller machines nationwide.
Fonacier said it is too early to talk about penalties because as investigation is ongoing.
“It would warrant a sanction if there were really violations of regulations, on banking laws, but it would also depend on how the banks took action on the problem. So those things need a really holistic assessment of the situation,” she said.
“If it’s a monetary sanction, P30,000 per day maximum … But we can’t also impose other sanctions as well—non-monetary sanctions. But, as I said, it would depend on the nature, whether they violated regulations of banking laws,” she added.

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