Role of AFPSLAI in possible money laundering scheme probed

The Anti-Money Laundering Council (AMLC) will look into the possible involvement of the Armed Forces of the Philippines Savings and Loan Association Inc. (AFPSLAI) in Glasgow Credit and Collection Services, now being investigated for alleged money laundering operations.

AMLC legal counsel Vicente Aquino told a press conference yesterday that the council has not received any complaint linking AFPSLAI to any money laundering activity but he said all aspects of the case are being reviewed.

AFPSLAI is a P19-billion non-stock savings and loan association servicing over 360,000 active and retired members of the Armed Forces of the Philippines.

AFPSLAI allegedly lent money to its members to invest in Glasgow but Aquino said the AMLC has not received information related to this report.

"We will look into that," Aquino said.

Bangko Sentral ng Pilipinas (BSP) Governor Rafael Buenaventura told reporters that the paper trail should be easy to trace through Glasgow’s frozen accounts especially if Glasgow’s investors paid for their investments in checks.

"The checks would have gone through the clearing house and that would be easy to see," Buenaventura said.

However, Buenaventura said the BSP has received no complaint. "If it is in any way connected, then the BSP will look into it,"he said.

Aside from banks and other financial institutions, savings and loans associations are under the regulatory jurisdiction of the BSP.

Glasgow’s accounts have been ordered frozen by the AMLC who said the order would be lifted only if it was determined that the company’s operations were legitimate and its documents were all in order. AMLC also froze the bank accounts of two other companies, Strasbourg International Corp. and NewCastle International Corp. on suspicion that they were related to Glasgow.

Glasgow reportedly offered investors a monthly interest of 15 percent, two percent referral fee and an accident insurance of up to P100,000.

Last July 11, AMLC issued a freeze order to several banks where Glasgow maintains its accounts. These banks include Citystate Savings Bank, Security Bank, HSBC Savings Bank, International Bank and Export Import Bank.

Glasgow reportedly used to handle transactions reaching 150 clients a day with a minimum investment of P50,000. Other investors risked millions. Most of the investors were personnel of the Armed Forces of the Philippines, including the Marines, and attached agencies of the Department of Interior and Local

Government such as the Philippine National Police, Bureau of Jail and Management Penology and Fire Protection.

Recruitment of clients reportedly even included 16 training schools of the Philippine Public Safety College under the PNP.– Des Ferriols