The Bangko Sentral ng Pilipinas urged supervised financial institutions (BSFIs) to adopt robust risk management system to prevent illegal investment activities that include the so-called “Ponzi scheme.”
In a memorandum signed by Deputy Governor Chuchi Fonacier, the BSP said banks and other financial institutions might be used to channel the funds amassed from these illegal investment activities, through deposit accounts of the lead perpetrators, their associates and related entities.
“It is therefore imperative that BSFIs adopt robust risk management system to identify, detect, prevent and mitigate risks arising from these illegal activities. This is anchored on having a strong governance framework, adequate policies and effective controls, among others,” the memorandum said.
Illegal investment schemes enticing the public to invest their recently money have been identified by supervisory authorities, such as the Securities and Exchange Commission.