Philippines scandal will see finance reform calls grow

Significance

The Philippines's largest-ever money laundering case reveals weaknesses in its financial system.

Impacts

• The central bank has boosted cyberdefence spending since the scandal broke; other banks may follow.
• Reputational risks mean foreign investors in Philippines banks need effective due diligence.
• Unreformed banking secrecy laws will constrain any efforts after May to expand the tax base.
• Tighter regulation for Philippines microfinance may follow, perhaps hitting small businesses' credit access.