Stricter remittance procedure imposed by Central Bank
In the wake of an alarming remittance scams that victimizes credit card holders, the Central Bank of the Philippines is directing all banks and other companies engaged in the money-transfer business to adopt stricter remittance procedures.
The remittance scam is done using someone else’s credit card by entities falsely claiming to be remittance providers and by individuals outside of the Philippines. These entities or individuals posing as remittance providers sends money to the Philippines by illegally using someone else’s credit card.
The BSP indicated that some of these entities and people doing fraudulent money transfers recruit agents in an initial recipient country such as the Philippines, who are then instructed to send the money to another country where the final beneficiary is located.
The illegal use of someone else’s credit card, which is a form of identity theft, has risen over the years as more people adopt the more modern and convenient way of transferring money.
Circular Letter 2009-06 issued last Tuesday by the Central Bank seeks to caution the rising incidence of the illegal scheme that allows beneficiaries to collect funds belonging to victimized credit card holders.
The Central Bank was prompted to issue the measure given the technological advances adopted to ease the process of money transfer, which likewise gives rise to an alarming rate of cyber crime cases. The BSP now requires remittance centers to strictly comply with the required remittance procedures.