AMLC asked to probe big orders for checkbooks

The Bankers Association of the Philippines (BAP) has tossed back to the Anti-Money Laundering Council (AMLC) the task of investigating clients suspected of ordering an unusually high number or checkbooks and using these to facilitate bogus investment businesses.

Securities and Exchange Commission (SEC) Chairman Lilia R. Bautista said the BAP has adopted a hands-off policy on the issue and instead, relegated this responsibility to the AMLC, an inter-agency body composed of the SEC, the Bangko Sentral ng Pilipinas and the Insurance Commission.

"To them (BAP), if an individual orders a high number of checks, it just means that this individual probably has many businesses," said Bautista.

"Therefore, any unusual number of checks ordered could be referred to as a suspicious transaction but should be referred to the AMLC," added Bautista.

The SEC is scheduled to meet with the BAP to come up with revisions on the Anti-Money Laundering Act (AMLA), specifically, on the possible monitoring of individuals with a suspicious number of bank check orders.

The SEC had asked the BAP to help in tracking down possible investment scams and asked the bankers’ group to closely monitor and control the release of checkbooks.

The SEC said there is a likelihood that individuals or companies with such extraordinary orders are involved in pyramiding or pseudo-investment activities.

Earlier, SEC compliance and enforcement director Jose Tomas Syquia told BAP executive director Leonilo Coronel that the most common modus operandi of firms engaged in investments scams is to issue post-dated checks to their unsuspecting victims.

Syquia said these companies usually issue six to seven checks to each investor covering six interest payments and the principal payment.

The SEC said the BAP should monitor and control the release of checkbooks to companies whose stated line of business do not normally require huge volumes of checks.