Suspicious transaction reach P556-B in 3 years

Suspicious transactions worth P556.24 billion have been discovered by the Anti-Money Laundering Council (AMLC) over a three–year period.

The AMLC said a total of 840,556 suspicious transaction reports (STR) were tagged by the Bangko Sentral ng Pilipinas, Securities and Exchange Commission and the Insurance Commission from 2018 to 2020.

The AMLC analyzed 258,087 STRs worth P50.57 billion to better understand the country’s risk and exposure to money laundering, terrorism financing and different predicate offenses by gathering information on the generation, movement and behavior of illicit funds and by evaluating the threats originating within and outside the country.

Majority of the STRs were related to violations of the Securities Regulation Code (SRC), swindling and violations of the Special Protection of Children against Abuse, Exploitation and Discrimination Act.

Meanwhile, top contributors in terms of amount generated were swindling, followed by violations of the SRC and illegal drugs and other related crimes.

Based on the United Nations Office on Drugs and Crime figures, the estimated yearly amount of money laundered globally is between P41 trillion and P103 trillion.

“There is an increasing trend in the reported suspicious current account and savings account and remittance transactions every year. The study also indicates that proceeds from a majority of the high-risk and medium-risk predicate crimes originated, circulated and remained within the Philippine financial system with the exception of child exploitation and terrorism-related activities,” the AMLC added.

For child exploitation and terrorism related activities, the assessment revealed illicit funds came from other countries with the Philippines as final destination of funds.

In terms of transaction frequency, top countries that pose the highest threat to the Philippines for inflows are the US, Saudi Arabia and the United Kingdom. The US also topped the list in terms of outflows, followed by Hong Kong and Kenya.

In terms of peso value, the AMLC said the United Kingdom topped the list, followed by the US and Belgium for inward remittances. Top destinations for outward remittances were Hong Kong, US and China.

“It was also noted that banks are the most common financial channels used by perpetrators and money launderers in moving criminal proceeds, especially transactions involving substantial amounts,” the AMLC added.

But AMLC noted that money service businesses and pawnshops with remittance capabilities were also being utilized to move illicit funds.