MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has warned banks and financial institutions about scams perpetrated by organized crime groups involving auto loans using fictitious identities.
BSP Deputy Governor Chuchi Fonacier issued Memorandum 2021 – 047, directing BSP-supervised financial institutions (BSFIs) to strictly observe and strengthen the implementation of the requirements pursuant to the Anti-Money Laundering regulations provided in the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions.
In particular, Fonacier said banks should strengthen customer identification and verification procedures, ongoing monitoring of customers and their transactions, suspicious transaction reporting, and continuing AML training program, including controls relating to partner/accredited car dealers.
She also reminded BSFIs to file suspicious transaction reports when warranted.
The regulator said the Philippine National Police-Highway Patrol Group (PNP-HPG) issued public warnings against emerging modus operandi of carjacking syndicates.
The warnings indicated that carjacking rings use fictitious identities to acquire high-end motor vehicles that are subsequently sold to the public using fake conduction stickers and license plates.
“It was noted that the MO possibly involves the use by carnapping syndicates of fictitious identities and falsified documents, such as identification cards and employment certificates, to successfully obtain auto loans,” Fonacier said.
She said the PNP reported that carjacking syndicates sometimes resort to identity theft, using an actual person’s name, address and company profile, but with a different photo.
“These may be prevented by reinforcing the conduct of, among others, customer identification and verification procedures as part of the customer due diligence,” Fonacier said.
The BSP said other reported typologies of carjacking syndicates include the “rent-tangay,” “rent-sangla or benta,” assume balance or “pasalo” schemes, loan accommodator scheme, and “labas casa” scheme.
Latest data from the Chamber of Automotive Manufacturer of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed auto sales rose 4.7 percent to 154,265 units from January to July.
However, auto loans disbursed by universal and commercial banks declined by 14.8 percent to P329.09 billion in the first half as the banking sector remained risk-averse, with total loans shrinking by two percent due to uncertainties brought about by the pandemic.