Irregularities involving forged endorsements of dividend checks issued by Paying Agent Banks of certain corporations

Sanak n0 inas

SUPERVISION AND EXAMINATION SECTOR OFFICE OF THE DEPUTY GOVERNOR

CIRCULAR LETTER Series of 2004

To All Banks

involving forged endorsements of dividend checks issued by Paying Agent Banks of certain corporations, banks are enjoined to take the necessary precautions in accepting Banks should examine thoroughly dividend checks with particular attention to the deposit of second-endorsed dividend checks, especially those in unusually large volume. payee's endorsement. In connection with reports received by the Bangko Sentral on. irregularities

to various rural and thrift banks for deposit and/or encashment when the legitimate Purportedly, checks deposited in large volume come from a single source who is not the payee of the checks. subscribers/payees of the dividend checks did not actually receive/endorse said checks. Allegedly, second-endorsed dividend checks are being presented in large volume

Transfer Department of the respective Paying Agent Banks of the issuer of the shares of stock, for proper disposition. banks are advised to notify immediately the Accounting and Control Section or the Stock In case of forged endorsements of dividend checks or suspicion of the same,

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NESTOR A.ESPENL) Sector-in-Charge JR

20_February 2004

MAG-IMPOK SA BANGKO

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