THE Anti-Money Laundering Council is urging Filipinos to be more “cautious and vigilant” in their digital transactions, as suspect digital activity has been on the rise along with digital payments due to the pandemic.
AMLC Chairman and Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno particularly called on banks and financial consumers to both practice and adhere to the process of “know-your-customer” (KYC) rules as he warned against money launderers abusing digital platforms that were largely adopted in the midst of the global health crisis.
Diokno reported that suspicious transaction reports (STRs) related to online activities increased by 57 percent in the first eight months of this year compared to the same January-to-August period last year.
The rise in STR filings during the period, the governor said, are manifested through three top means: (1) unauthorized account access through skimming and phishing and other violations of the Electronic Commerce Act at 49 percent of all reported transactions, with an estimated value of P2.7 billion; (2) Online sexual exploitation of children and related crimes, at 13 percent and with an estimated value of P P84.5 million; and (3) Suspected money mules/pass-through accounts at 9 percent, with an estimated value of P 406.9 million.
“Proper know-your-customer and customer due diligence procedures must always be conducted, while clients’ risk ratings must be periodically assessed. Likewise, online fund transfer service providers are advised to be vigilant especially during the pandemic,” Diokno said.
He warned the public of suspicious activities masking as legal or legitimate transactions. He said some of these include fraudsters pretending to be affiliated with a government unit and a government agency in soliciting Covid-19 donations and Online shopping swindling schemes involving cryptocurrency.
Other notable red flags include large incoming or outgoing transactions for Covid-19 or other humanitarian causes with no valid documentation, unsubstantiated deposits or fund transfers as alleged payment for products and/or services rendered to government units for Covid-19 relief efforts and receipt of large deposits allegedly caused by changes in the nature of employment, allegedly due to the pandemic.
Some also mask digital criminal activity as large deposits allegedly for the sale of medical items or donations for Covid-19 relief efforts from unusual senders or channels, such as virtual currency companies.