Vigilance urged vs fenced items

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) has cautioned jewelry dealers, banks, pawnshops, casinos, among others against accepting fenced or stolen items.

The financial intelligence unit has issued an advisory urging covered persons under the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), and the Insurance Commission (IC) to be vigilant in dealing with or accepting fenced items.

Fencing is the act of any person who, with intent to gain for himself or for another, shall buy, receive, possess, keep, acquire, conceal, sell or dispose of, or shall buy and sell, or in any other manner deal in any article, item, object or anything of value which he knows, or should be known to him, to have been derived from the proceeds of the crime of robbery or theft.

The AMLC said fencing is an unlawful activity and is a Violation of Presidential Decree 1612, otherwise known as the Anti-Fencing Law.

“Covered persons are advised to conduct proper due diligence of their customers or clients and monitor transactions to recognize when a transaction, or a series of transactions, are unusual,” the AMLC said.

It added covered persons should promptly file suspicious transaction reports (STRs) with the financial intelligence unit if they encounter doubtful transactions.

“STRs should be filed, including attempts thereof, to the AMLC within the next working day from the date of establishment of suspicion or determination of the suspicious nature of the transaction,” the AMLC said.

Under Republic Act 9160 or the Anti-Money Laundering Act (AMLA) of 2001 as amended, transactions are suspicious if there is no underlying legal or trade obligation, purpose or economic justification; the customer is not properly identified; and if the amount involved is not commensurate with the business or financial capacity of the customer.

Transactions are suspicious, according to the AMLC, if these are similar or analogous; if these are related to an unlawful activity or offense under the AMLA; and if these deviate from the profile of the customer and/or the customer’s past transactions with the covered persons.

Likewise, the AMLC said transactions are doubtful when client’s transaction is structured in order to avoid being the subject of reporting requirements under the AMLA.

The financial intelligence unit warned covered persons that non-performance of their anti-money laundering/combating the financing of terrorism (AML/CTF) obligations such as customer due diligence, monitoring of transactions and filing of transaction reports, among others, are subject to enforcement actions.