Regulators are scrutinizing the books of LBC Development Bank to determine if there is a basis for a criminal charge against its managers or shareholders.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor Espenilla told reporters on Wednesday there is an ongoing audit on all transactions the bank made with respect to its remittance affiliates in the Philippines and overseas.

LBC Bank was previously told to stop lending allegedly excessive amounts of money to its remittance affiliates, which later on was determined to have helped precipitate the lender’s eventual closure.

“We are looking to discover if we have solid basis for the filing of a complaint against the bank’s officers and shareholders. We have no such knowledge at this point,” Espenilla said.

His boss, BSP Governor Amando M. Tetangco Jr., also said by e-mail the remittance business remained sound and vibrant despite the current regulatory scrutiny on some of the players.

“The overall remittance business in the country remains sound as indicated by sustained increase in amounts remitted,” Tetangco said.

Money sent home by up to 10 million overseas Filipinos as of end-June this year already totaled $9.6 billion but expected to end the year at more or less $20 billion or some 7 percent more than last year.

Tetangco said the remittance units of the LBC Group of companies are outside the BSP’s competence to study or review; nonbank remittance companies are supervised by the Securities and Exchange Commission.

“Our cease-and-desist order was directed at LBC Bank and not against the LBC remittance companies,” he said.