Financial Crime World

Here is the article in markdown format:

Widespread Money Laundering Exposed in Kuwait

A shocking report has revealed that a foreign national, residing in a metropolitan area in the Philippines, has been sending local remittances to various individuals in the country. The declared purposes of the transactions include:

  • Transportation
  • Allowance
  • Food expenses
  • Rental
  • Budget
  • Medicine
  • Salary

The report, obtained by the Kuwait Times, states that the sender declared varied relationships with the recipients, including:

  • Boyfriend
  • Friend
  • Uncle
  • Brother
  • Helpers or caregivers

What’s more alarming is that the transactions triggered alerts due to the volume and frequency of remittances, which reached 200 counts, and the characteristics of the recipients, who are mostly Filipinos, usually female, and residents of various provinces in the Philippines.

Hong Kong’s Financial Regulators on High Alert

Meanwhile, financial regulators in Hong Kong have issued a warning about the increasing trend of drug trafficking via online-demand courier services (ODCS).

According to a report by the National Capital Region Police Office (NCRPO) chief, an estimated PHP171 million-worth of drugs were confiscated from 15 March to 10 May 2020. This is compared to less than five kilograms confiscated during the same period last year.

The NCRPO chief attributed the rise in drug trafficking to the ongoing pandemic, saying that it has not hindered the operations of drug syndicates.

Recommendations for Financial Institutions

In light of these findings, financial institutions are advised to be vigilant and implement stricter measures to prevent money laundering. The Anti-Money Laundering Council (AMLC) recommends using keywords such as:

  • “COVID-19”
  • “ECQ”
  • “pandemic”
  • “lockdown”
  • And other relevant terminologies when filing suspicious transactions.

The AMLC also advises financial institutions to be cautious of digital KYC/CDD, which many customers adopted during the pandemic. As unemployment rises, criminals may entice people to sell their profiles to create pass-through or money mule accounts and take advantage of digital account applications and non-physical KYC processes.

Global Efforts to Combat Money Laundering

The report highlights the need for global efforts to combat money laundering and other financial crimes. The Philippines is not alone in this struggle, as many countries are grappling with similar challenges.

In related news, various local law enforcement agencies have issued bulletins via their official websites, including press releases on:

  • Drug-related cases
  • Online sexual exploitation of children
  • And other unlawful activities

This could be an additional reference for financial institutions when filing suspicious transactions. Official websites include those of the NCRPO and PNP Women and Children Protection Center.