Manager's checks in money laundering cases can be tracked, says AMLC

The Anti-Money Laundering Council (AMLC) on Thursday said that manager’s checks (MC) can still be monitored for possible suspicious transactions, amid concerns that some politicians may use them for their laundering schemes.In a statement to GMA News Online, the AMLC said it acknowledges the concern raised by Ombudsman Jesus Crispin Remulla regarding the potential use of manager’s checks in money laundering.“[T]ransactions involving the purchase of an MC may be reported as covered or suspicious transactions, depending on the circumstances. As such, these transactions are subject to established monitoring, due diligence, and reporting requirements imposed on banks,” the AMLC said, citing its Guidelines on Transaction Reporting and Compliance Submissions (GoTRACS).“Any instance where the Bank Secrecy Law or the Anti-Money Laundering Act may have been used to shield MCs from proper scrutiny can be questioned,” it added.Further, the AMLC said that a manager’s check is not an anonymous tool, as it is issued to a specific payee and supported by bank records, including details of the purchaser, amount, date of issuance, and beneficiary.“These features make the transaction traceable and capable of generating an audit trail, unlike purely cash-based transactions,” the anti-dirty money body said.Moreover, the AMLC said the Anti-Money Laundering Act of 2001, as amended, provides clear exceptions to bank deposit secrecy laws that protect the confidentiality of client information.“Covered persons, such as banks, are required to report covered and suspicious transactions to the AMLC, and the AMLC is authorized, subject to lawful processes, to inquire into relevant accounts. These mechanisms ensure that transactions may be examined by competent authorities, when warranted,” it said.Remulla previously said that they are looking into the possibility that 26 House members who are allegedly government contractors have "unexplained cash.""Yung unexplained cash, disbursements, titingnan namin. The best laundering mechanism na ginagamit ng mga gumagawa na ‘yan, bibili sila ng MC (manager’s check) sa bangko,” Remulla said in his radio program.(We'll also look into their unexplained cash and disbursements. The best laundering mechanism that they use is to buy a manager's check from the bank.)“Hindi covered deposit 'yan. Noong aming tinitingnan, sobrang strikto ng BSP. Parang, bakit ganito? Sinasabi nila, ‘Hindi mo puwedeng tanungin ‘yan, kasi covered transaction, secrecy of bank deposits.’ That's the ultimate laundering mechanism,” he added.(That's not a covered deposit. When we looked into it, the BSP was very strict. They told us, 'You could not ask about that; it's a covered transaction. It's under the secrecy of bank deposits.' That's the ultimate laundering mechanism.)Remulla had ordered lifestyle checks on the 26 “congtractors," whose Statements of Assets, Liabilities, and Net Worth (SALNs) were already obtained by the Ombudsman. —LDF, GMA News