Increasing incidence of cases involving forged/faked/spurious checks

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SUPERVISION AND EXAMINATION SECTOR OFFICE OF THE DEPUTY GOVERNOR

CIRCULAR-LETtER

TO: ALL BANKS AND NON-BANK FINANCiAL INSTITU'TIONS

SUBJECT: INCREASING INCIDENCE OF CASES INVOLVING FORGED.

FAKED/SPURIOUS CHECKS

southern part of Mindanao, specifically in the cities of Cagayan de Oro, lligan cases involving the negotiation of forged/faked/spurious checks in the and Davao. It has come to our attention that there is an increasing incidence of

account/s the forged/faked/spurious checks and subsequently withdrawing or Manila clearing. responsible for these forged/faked/spurious checks. The modus operandi of funds from these accounts. another Manila-based bank. These checks were cieared either through local the said group involved the opening of deposit accounts under fictitious name/s in the Jocal branch of a Maniia-based bank, depositing in the said appeared to be genuine and/or authentic but under forged signature and were drawn against the account/s of legitimate depositor/s of the local branch of Based on the information we received, a syndicated group is The checks being deposited by the syndicate

identity to open deposit accounts and use of apparently genuine or authentic and the "Know-Your-Customer" (KYC) policy been strictly implemented. the concerned parties faithfutly discharged their duties and responsibilities checks under forged signature drawn against the account/s of legitimate depositor/s. Losses to the bank/s concerned could have been prevented had The modus operandi used by the syndicate is not new: use of fictitious!

fake 1,000- and 500- peso bills in the same area. The same syndicate is said to be also involved in the proliferation of

For your guidance

NESTOR A. ESPENILLA, JR Sector-in-Charge

18 February 2004

MAG-IMPOK SA BANGKO 3 MAYNILA,PILIPINAS 1004 - Tel No. 524-70-11 trunkline - URL: www.bsp.gov.ph : e-mail: [email protected]