Opening of anomalous deposit accounts

CIRCULAR LETTER NO. CL-2007-019

To     : All Banks

Subject : Opening of anomalous deposit accounts

It has come to the attention of the Bangko Sentral ng Pilipinas (BSP) that individuals have been able to open anomalous deposit accounts under the name/s of prominent government official/s through the presentation of fake documents. These account/s in turn are used to lend credence of an "apparent official government action" to financial scams. These accounts are used as depository accounts to collect money from innocent victims of financial scams.

Thus, Banks are reminded to strictly observe due diligence in the following "Know your Client" measures in line with Circular No. 302 dated 11 October 2001, implementing Section 9 of R.A. No. 9160 (otherwise known as the Anti-Money Laundering Act of 2001), as amended by R.A. No.9194:

Covered institutions shall establish and record the true identity of their clients based on official documents. They should require clients to produce unexpired original documents issued by an official authority that bear their photograph such as passports, social security, identification cards and driving license;

Covered institutions shall also maintain a system of verifying the true identity of their clients as well as the authority and identification of all persons purporting to act on their behalf; and

Anonymous accounts, accounts under fictitious names and all other similar accounts shall be absolutely prohibited. However, peso and foreign currency non-checking numbered accounts shall be allowed: Provided, That the true identity of the customers of all peso and foreign currency non-checking numbered accounts are satisfactorily established based on official and other reliable documents and records, and that the information and documents required under these rules are obtained and recorded by the covered institutions.

Please note that the non-observance of the said measures constitutes a violation of Section 9 of R.A. No. 9160, as amended and would subject the erring bank to appropriate penalties thereunder.

NESTOR A. ESPENILLA, JR Deputy Governor