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Suspicious Transaction Reports (STRs) increased in the first eight months of the year driven by the rise in phishing schemes and increased payments related to child pornography, the central bank chief said.
The Governor of Bangko Sentral ng Pilipinas (BSP) and Chairman of the Anti-Money Laundering Council (AMLC), Benjamin E. Diokno, said that an AMLC study found that the number of RTS increased 57% year-over-year in the first eight months of 2020.
“However, of the total number, only 29% occurred during the blackout period,” he said in an online briefing on Friday.
STRS are filed by financial institutions when there are suspicious money laundering or fraud transactions.
Almost half (49%) of STR submissions during the period were related to skimming and phishing, with an estimated value of P2.7 billion.
Meanwhile, 13% of the STRs were transactions related to the sexual exploitation of children online, with an estimated value of P84.5 million.
Transactions involving money mules or transfer accounts with an estimated value of P406.9 million constituted 9% of the ROS during the period.
“AMLC underscores the need for covered individuals to be cautious as money launderers and other criminals may be abusing digital platforms, which have been adopted largely due to the pandemic,” Diokno said.
According to the report, STRs related to electronic banking transactions increased 1,680% for incoming funds transfers and 5.158% for overseas fund transfers.
Cash inflow and outflow transactions carried out through electronic cash cards that were recorded as STRs also increased significantly 580% and 197%, respectively.
STRs filed by electronic money issuers, pawn shops, and money service companies also increased 688% and 51%, respectively.
“Proper due diligence procedures should always be carried out to get to know your customer / client. Clients’ risk ratings should be periodically evaluated in light of questionable and irregular financial transactions, ”Diokno said.
The AMLC study found that there has been a growing trend of scammers claiming to be affiliated with government units to solicit donations related to the coronavirus pandemic. There were also incidents of Bitcoin-related online shopping fraud schemes.
“E-money issuers, money service companies and other online money transfer service providers are advised to be vigilant amid an increase in ROS related to online activities,” Diokno said. – Luz Wendy T. Noble
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