As the default bank for crypto investors, UnionBank drew some flak recently due to some news circulating around social media. These posts narrated their experiences of accounts being blocked due to cryptocurrency not being recognized by the BSP. The said post even mentioned that transactions over Binance are not in conjunction with the bank’s Anti-Money Laundering (AML) policies. Thankfully, BitPinas was able to secure an interview with Arvie De Vera, who is the Senior Vice President & Head, Fintech Business Group at UnionBank and now CEO of UnionDigital.
From this exclusive interview, Mr. De Vera reiterated that UnionBank remains to be the only financial institution open to dealing with crypto for retail traders. He even challenged any user to visit the Binance site to see for themselves if UnionBank was eliminated from the options.
When dealing with cryptocurrency transactions, he further elaborates that the bank just needs to clarify 2 main things in the interest of legality: who the account holder is, and where the funds are coming from. If the account is relatively new and a strange flood of cash is deposited, then this will automatically trigger AML policies and KYC (Know-Your-Customer) processes. A suspicious transaction report may also be done.
In these scenarios, Mr. De Vera advises that account holders cooperate in submitting requested documents in order to clear themselves of any suspicion. This will allow the account holder to perform business as usual after clearance.
UnionBank has been in the limelight lately due to not only its acquisition of Citi’s consumer banking arm, but also for the BDO hacking incident that saw stolen resources being transferred to a UnionBank account.
We’ll keep you posted on the Unchain site.