The Bangko Sentral ng Pilipinas (BSP) has strongly called on banks and non-bank financial institutions (NBFIs) to strengthen their surveillance and monitoring systems to prevent the misuse of digital channels for vote-buying in the upcoming May 12 elections.
“The BSP strongly calls for the adoption of enhanced surveillance and monitoring measures to prevent the misuse of financial institutions as conduits for these illegal activities,” it said in the memorandum signed by BSP Deputy Governor Chuchi G. Fonacier, released Monday, March 24.
According to the central bank, this memorandum aligns with the government’s “efforts to curb vote-buying, vote-selling, and abuse of state resources (ASR) in the conduct of elections.”
BSP-supervised financial institutions (BSFIs) are also “urged to tighten their existing controls in detecting or preventing the possible influx of fraudulent accounts and transactions as the election date approaches.”
To lessen the “heightened” risk of digital channels being abused or misused for vote-buying, the BSP said banks should tighten their security measures. This includes stricter customer onboarding, enhanced fraud management systems, and continuous transaction monitoring.
Further, the central bank advised financial institutions to strengthen their fraud management systems and monitoring rules ahead of the polls.
It said banks and non-banks should watch for suspicious activities such as a surge in account registrations in areas prone to vote-buying, large cash transactions, and unusual digital fund flows.
Financial institutions must also flag abnormal cash-in and cash-out volumes through agents.
Under the Anti-Money Laundering Act (AMLA), they are required to report suspicious transactions to the Anti-Money Laundering Council (AMLC). This covers unusually large, complex, or unjustified transactions that may indicate vote-buying, money laundering, or terrorism financing.