Counterfeit/Spurious Customized Corporate Checks and Money Transfers to Fictitious Accounts

CircuLAr-LetTer Series of 2005

TO : All Banks and Non-Bank Financial Institutions

Subject : Counterfeit/Spurious Customized Corporate Checks and Money Transfers to Fictitious Accounts

the production by unknown parties of counterfeit or spurious customized corporate checks. It has come to our attention of the growing incidence of cases involving

features, and bear the check seriai numbers pertaining to unissued checks. It printed on security paper, bear one or more of the corporate's security Based on the information we received, these counterfeit checks are

signatures of the corporate's authorized signatories and then precisely printed aiso appears that the signatures thereon are scanned from genuine specimen on the checks using blue and black ink, thus, rendering it difficult, if not impossible, to detect them as facsimiles during signature verification. The identification papers. payees of these checks are reportedly persons using false names and

sent to Manila. Money transfers are made to fictitious accounts set up in the Philippines. Said money transfers are successfully withdrawn by perpetrators. signatures of US-based check issuers. Signatures are copied from the check There have also been reports of forgery through computer of

their abitity to open accounts and pass the "Know-Your-Customer" (KYC) scrutiny with fraudulent identification documents. advantage of technological means in the commission of their crimes, including Apparently, there is an increase in the ability of fraudsters to take

parties to faithfully discharge their duties and responsibilities. extra vigilant by strictly impiementing the KYc policy and for concerned Banks and non-bank financial institutions are, thus, enjoined to be

For your guidance.

Alber REYES Deputy Governor

5 April 2005

PananalaPIng Matatag, BanSang PanataG

A.:Mabini St., Malate 1004 Manila, Philippines @ Trunkline (632) 524-70-11 URL:www.bsp.gov.ph @ e-mail: [email protected]