AMLC warns vs digital vote buying

BANKS AND FINANCIAL institutions should closely monitor large transactions that may be part of money-laundering and vote-buying activities during the election campaign period, the Anti-Money Laundering Council (AMLC) said. 

The AMLC issued the advisory “in anticipation of the influx of financial activities that usually occur during the election period, and to ensure that proceeds from unlawful activities are not laundered during the campaign period.”

Filipinos will head to the polls on May 9 to vote for a new president, vice-president, lawmakers and local officials. The three-month election campaign period officially began on Feb. 8.

The “dirty money” watchdog reminded all covered persons to conduct appropriate customer due diligence measures, as outlined in the Anti-Money Laundering Act of 2001. They should closely monitor their customers’ transactions, and file suspicious transaction reports, if needed.

Aside from banks, covered persons include financial institutions like pawnshops, foreign exchange dealers, money changers, money changers and remittance companies, jewelry dealers, casinos, offshore gaming operators, and real estate brokers and developers. 

“Covered persons must be mindful of…red flag indicators and suspicious behaviors that are related/linked or are analogous to possible money laundering activities,” AMLC said in a statement.

These red flags include large transactions in a short period of time; and transactions that appear to be inconsistent with a customer’s financial profile or business.

Suspicious transactions include “unjustified” large cash deposits and withdrawals, “unusual” transactions that are not in line with everyday dealings; and structured cash deposits and money transfers.

Other red flags include the use of multiple accounts by a single person; and use of several money service businesses to send funds.

Earlier, the Bangko Sentral ng Pilipinas (BSP) through Memorandum M-2021-074 dated Dec. 31, 2021 also warned against the possible proliferation of digital vote buying amid the upcoming elections on May 9. Financial institutions were also told to watch out for the possibility that online banking and mobile wallet applications will be used for vote-buying activities. 

The BSP said financial institutions should ensure appropriate customer onboarding, effective fraud management, and ongoing transaction monitoring.

The Parish Pastoral Council for Responsible Voting (PPCRV) Chairperson Myla Villanueva said they have been alerted about offers of money to buy voters’ votes months ahead of the May 9 election. 

“We hear a lot of issues about vote buying and it’s very difficult for PPCRV to catch that and report it. We’re hearing a lot of big numbers being offered to people and families in fact,” Ms. Villanueva said in an interview with ABS-CBN News Channel on Monday.

Asian Institute of Management economist John Paolo R. Rivera said the culture of vote buying “exists because of poverty.”

“It’s challenging to regulate it because we do not have sophisticated systems to detect it. We only know it happened when it happens. It’s a bandaid solution to alleviate hunger and poverty, which the poor grabs because it will help them survive the day,” Mr. Rivera said in a Viber message.

Under the Omnibus Election Code, persons found guilty of vote buying or selling may face penalties of imprisonment for one to six years, disqualification from public office, and forfeiture of one’s right to vote.

The Commission on Election last week said cases of vote buying or giving money and other goods in exchange for support on election day may be reported through social media platforms. Comelec Spokesman James B. Jimenez said they are looking for ways to address the possible use of e-wallet services for such activities.

The Philippines has been included among jurisdictions under increased monitoring by the Financial Action Task Force (FATF) in June 2021. It needs to prove it has implemented tighter measures against dirty money and terrorism financing to exit the FATF’s “gray list.”

The government is hoping to be removed from the gray list by January 2023. — LWTN