Raise bar vs scammers — BSP

The Bangko Sentral ng Pilipinas (BSP) has instructed banks and financial institutions to remain vigilant against scammers and fraudsters amid a rising number of complaints.

BSP Deputy Governor Chuchi Fonacier said the BSP has been receiving complaints from people who were reportedly defrauded by scammers or fraudsters using financial products and services, such as deposit or electronic money accounts, credit cards and remittance services as modes to fraudulently funnel out funds.

“In this regard, it is important that BSP-supervised financial institutions remain vigilant and steadfast to mitigate

and prevent risks arising from these illegal activities and preserve the public’s confidence in using financial services,” Fonacier said.

Clients turned to digital channels when Luzon was placed under enhanced community quarantine to limit the spread of the coronavirus disease 2019 or COVID-19.

Fonacier issued Memorandum 2020 – 053 reminding banks and financial institutions to maintain the soundness and propriety of their risk management policies and practices, consistent with the BSP’s regulations on anti-money laundering or countering the financing of terrorism, consumer protection, among others.

She said banks should identify, assess, understand and measure the risks associated with these scams or frauds.

“This will enable identification of the products and services that are being used by scammers/fraudsters or vulnerable to be used for illegal activities,” she said.

Fonacier said banks should enhance policies, procedures and controls commensurate with the identified risks to prevent use of their financial products or services as delivery channels for the proceeds of unlawful activities or as a conduit, knowingly or unknowingly.

She said banks should conduct risk-based due diligence on customers, proactively monitor accounts using relevant parameters or alert scenarios, use accounts review or trigger to conduct transactional enhanced due diligence and file suspicious transaction report (STR), update risk profile of clients and develop a robust due diligence for recruitment of cash agents to minimize onboarding of agents with poor reputation.