Remittance scam involving the use of Credit Cards

3an Ro entral na f inas

OFFICE OF THE DEPUTY GOVERNOR SUPERVISION AND EXAMINATION SECTOR

CIRCULAR LETTER NO. CL-2009- 006

For All Banks and Non-Bank Financial Institutions Authorized

to Act as Remittance Agents

Subject: Remittance scam involving the use of Credit Cards

financial institutions authorized to act as Remittance Agents (RAs) of a sample case involving a remittance, coursed thru another Remittance Service Provider (RSP) abroad, illustrated as follows: The Bangko Sentral ng Pitipinas informs all banks and non-bank

(AFS) thru a job agent (USA) ABC Financial Services

the Philippines using a credit Money in the US and XYZ in card (e.g. Paypal) via online Remits funds through DEF remittance transaction Recruits job agent in Philippines (e.g., Cebu); instructs RP agent to receive funds then remit to a designated beneficiary in Russia

Credit card holder contests transaction and reverses within 45-day period Job agent in Cebu remits funds to Russia through TUV Co. Cebu and informs AFS beneficiary in Russia Designated

funds from job agent in Cebu DEF Money and XYZ claim thru legal counse!

belonging to victimized credit card holders. The above scheme allows the recipients/beneficiaries to collect money

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

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RAs are enjoined to strictly comply with the provisions of:

Section 8 of Circular No. 471 dated 24 January 2005 on the Requirements for RAs to maintain accurate and meaningful originator information; and information on funds transferred/remitted by requiring sender/remitter to fili out and sign an application form containing important data and

2. Circular No. 608 dated 20 May 2008 governing the acceptance of valic addition to the requirements of Rule 9.1.c. of the Revised R.A. No. 9194 on the Minimum Information/Documents Required for Individual Customers. identification cards for financial transactions by banks and non-bank financial institutions that reguire clients for the first time to present the originai and submit a clear copy of at least one valid photo-bearing identification documents issued and signed by an official authority in Implementing Rules and Regulations of R.A. No. 9160, as amended by

including, but not limited to: an escrow deposit arrangement, insurance to concerned RAs are advised to consider measures to mitigate financial risks cover loss, a careful review of the terms and conditions of the service contract and another analogous precautionary procedures. Moreover, in entering into remittance agreements with other RsPs

For your guidance and strict implementation

NESTOR A. #SPENIVA S80 F

Deputy Govern&r

ZZ/January 2009