In a memo issued over the weekend, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier directed all banks to strictly verify the identities of its customers.

“All BSP supervised financial institutions (BSFIs) are “cautioned to strictly observe and strengthen” the implementation of Anti-Money Laundering (AML) Regulations “particularly on customer identification and verification procedures, ongoing monitoring of customers and their transactions, suspicious transaction reporting, and continuing AML training program, including controls relating to partner/accredited car dealers.”

The BSP issued the memorandum following the public warnings issued by the Philippine National Police-Highway Patrol Group (PNP-HPG) against the fraudulent schemes being perpetrated by car theft syndicates wherein a vehicle is purchased through a car loan using fictitious names.

“The mortgaged (motor vehicles) are subsequently sold to the public using fake conduction stickers and plate numbers. Falsified documents, such as identification cards and employment certificates, are used to avail of the auto loans,” Fonacier said.

Banks were also warned against the “rent-tangay” or “rent-sangla”, assume balance, loan accommodator and labas casa schemes, all of which are aimed at taking the vehicle from unsuspecting buyers.

Under rent-tangay scheme, vehicles rented are not returned after the lapse of the contract.

The rent-sangla scheme is the pawning or selling of a vehicle while the assume balance/pasalo scheme is the act of selling a vehicle by way of assuming the mortgage loan, using spurious documents.

Under the loan accommodator scheme, a carnapper will pose as a legitimate business while the labas casa scheme refers to the act of using so-called ‘artista’ who will acquire an auto loan from a car dealership using falsified papers.

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