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As many were forced to use digital payments during strict lockdowns implemented in the first half of the year due to the COVID-19 pandemic, a dramatic increase in suspicious transaction reports was seen in the first eight months of the year.
In a virtual press conference, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said that the Anti-Money Laundering Council (AMLC) noted an increase in suspicious transaction reports (STR) related to online activities in its “Summary of typologies and trend analysis of financial crimes COVID-19, Series 2. “
Diokno, who as governor of the BSP also chairs the AMLC, said the report examines the ROS submitted to the AMLC from January 1 to August 31, 2020, which covered the months of Enhanced Community Quarantine (ECQ), Modified ECQ and Quarantine. general community.
“STR filings for the period increased by 57% compared to the same months in 2019,” he said.
The head of the central bank pointed out that of the total number of ROS, only 29% occurred between March 16 and August 31.
“STR filings from electronic money issuers (EMIs) skyrocketed 688%, while those from pawn shops and money service companies (MSBs) rose 51%,” he said.
The AMLC previously said that the dramatic increase in ROS does not necessarily equate to an increase in money laundering cases, but only an indication of increased cooperation between the agency and the entities under its supervision.
Diokno said the following are the main reasons for STR’s presentation:
- Unauthorized account access through skimming and phishing, and other violations of the Electronic Commerce Law at 49% with an estimated value of P2.7 billion
- Online sexual exploitation of children and related crimes 13% with an estimated value of P84.5 million
- Suspicious money mules / transfer accounts at 9% with an estimated value of P406.9 million.
“Due to the increase in the use of online space and electronic money for money laundering, ROS related to electronic banking transactions grew by 1,680% for incoming funds transfers and 5,158% for foreign funds transfers” Diokno said.
“ROS, which involve cash inflows and outflows through electronic cash cards, increased 580% and 197%, respectively,” he added.
The AMLC report also noted the following:
- Suspicion of “smurf” scheme and transfer accounts / money mule
- Scammers pretending to be affiliated with a government unit and a government agency to solicit COVID-19 donations
- Online Shopping Scam Scheme Involving Bitcoin
Other notable red flags include large inbound or outbound transactions for COVID-19 or other humanitarian causes without valid documentation and unsubstantiated deposits or fund transfers such as alleged payment for goods and / or services provided to government units for COVID relief efforts. -19.
The AMLC also found ongoing or unusual account transactions, such as cash deposits, cash withdrawals, check writing, payments to suppliers of companies negatively affected by the pandemic.
The council also saw the receipt of large deposits allegedly caused by changes in the nature of employment and / or business – allegedly due to the pandemic – vis-à-vis the customer’s account information during the onboarding process; Receipt of large deposits purportedly for the sale of medical items or donations for COVID-19 relief efforts from unusual senders or channels, such as virtual currency companies; and small-value, fast-moving funds for multiple account holders with immediate withdrawals but no underlying justification.
“As covered individuals become more aware of this information, AMLC expects a continued increase in STR submission,” Diokno said.
“This is crucial in the collection and investigation of financial intelligence against money laundering and its preceding crimes; and terrorism and its financing ”, he added.
The AMLC also emphasized the need for sustained caution and vigilance as money launderers may be abusing digital platforms that have been adopted largely due to the pandemic.
“Proper know-the-customer and customer due diligence procedures should always be carried out, while customer risk ratings should be periodically assessed. Also, providers of online funds transfer services are advised to be vigilant, especially during the pandemic, ”Diokno said.. –KBK, GMA News
