AMLC to probe bank, e-money accounts with unusual election-related transactions

The Anti-Money Laundering Council (AMLC) said that it will investigate bank and electronic money (e-money) accounts that will have unusual transactions ahead of the May 2022 national elections.

In an advisory posted on February 14, the AMLC anticipates the influx of financial activities that usually occur during the election period, and reminded all covered financial institutions of their obligations under the Anti-Money Laundering Act of 2001, and conduct appropriate customer due diligence measures, including ongoing monitoring, electronic or otherwise, of customer transactions, as well as to file suspicious transaction reports, if warranted under the circumstances, to ensure that proceeds from unlawful activities are not laundered during the campaign period.

The following are red flag indicators and suspicious behaviors that are related or linked to possible money laundering activities or any of its unlawful activities:

• Significant or large transactions occurring in a short period of time;
• Unjustified large cash deposits and withdrawals;
• Transactions seem to be inconsistent with the customer’s financial profile or declared business;
• Unusual transactions or activities compared with normal everyday trade or dealings;
• Structured cash deposits and money transfers;
• Use of multiple accounts by a single transactor; and
• Use of several money service businesses to send funds.

In a report by the PNA, the AMLC clarified that the investigation of financial transactions will not be a violation under the Data Privacy Act as it is part of the AMLC’s mandate.

“As a financial intelligence unit, ang mandato po ay (the mandate is) to preserve integrity of the bank accounts and to ensure na ang Pilipinas po ay hindi ginagamit (that the Philippines is not being used) to launder proceeds of unlawful activities. And kung hindi po tayo magsyi-share ay napakahirap pong ma-execute iyong aming mandato. So, mayroon po kaming exemptions sa National Privacy Commission (And if we will not share information, it will be hard to execute our mandate. So, we have exemptions from the National Privacy Commission),” said Mel Georgie Racela, Anti-Money Laundering Council (AMLC) Executive Director.

In addition, the AMLC has also teamed up with the BSP, PNP, and NBI to curb vote-buying and vote-selling.