The Financial Transaction and Reports Analysis Centre of Canada (Fintrac) can trace the large amounts of US dollar transfer reportedly made from the Philippines to Canada as all reporting entities including banks and financial institution are required to submit reports of any deposit in excess of $10,000 for a 24-hour period.
“Canada’s anti-money laundering and anti-terrorist financing regime is dependent on the dedicated efforts of Canada’s businesses on the front lines of the legitimate economy. Our compliance efforts are targeted at ensuring they fulfill their legal obligations and send us the information that we need to produce actionable financial intelligence for our law enforcement and national security partners,” Gérald Cossette, Director, Financial Transactions and Reports Analysis Centre of Canada said.
According to Fintrac, a number of business sectors in Canada are required, under the Proceeds of Crime, Money Laundering and Terrorist Financing Act (PCMLTFA), to keep certain records, identify clients, maintain a compliance regime, and report financial transactions to Fintrac.
Sectors covered under the legislation include accountants, notaries, casinos, dealers in precious metals and stones, financial entities, life insurance, money services businesses, real estate, and securities dealers.
Administrative monetary penalties are issued to encourage change in the non-compliant behavior of reporting entities.
A Court of Appeals resolution freezing some 242 accounts of Vice President Jejomar Binay and his alleged dummies revealed that a “considerable amounts’ of US dollars were transferred from the Philippines to Canada during the years that two controversial buildings were being constructed in Makati City.”
Binay is at the center of a months-long Senate probe and is the subject of graft complaints before the Ombudsman, alongside his son, incumbent Makati Mayor Jejomar Erwin Binay Jr.
The Binays’ detractors allege that father and son earned from the construction of the Makati City Hall Building II and the Makati Science High School building during their terms as mayor.
The Vice President is also accused of earning from what his critics call a lopsided deal between the Boy Scouts of the Philippines (BSP) and land developer Alphaland. Binay has been the national president of the BSP for close to two decades.
“Considerable amounts of US dollars were transferred from Philippine to Canadian banks in the years of 2008 to 2014, the period when the subject buildings were constructed,” read the Court of Appeals’ May 11 resolution.
The resolution, which freezes the bank accounts of Binay and his supposed dummies, emphasized the urgency in its decision, noting that some of the accounts covered by the order were closed after the Senate Blue Ribbon sub-committee began its probe in August 2014.
“The US dollar transfers originated from accounts held either individually by Limlingan and VP Binay at [RCBC], [Metrobank], or [BDO],” read the resolution, a copy of which was given to the media by former Makati vice mayor and chief whistleblower Ernesto Mercado.
Other accounts the Anti-Money Laundering Council (AMLC) monitored include three accounts owned by Binay at Banco de Oro, Metrobank Sta. Ana, and Land bank in Makati City, and Binay’s and Limlingan’s two joint accounts at Banco de Oro at JP Rizal, and another account owned by Binay, Limlingan and a certain Lily Hernandez Crystal in Metrobank.
“The AMLC observed large and frequent transactions made between the period of 2008 to 2014 involving the aforementioned accounts of VP Binay, maintained individually or jointly with either Limlingan or Lily Hernandez Crystal,” read the CA resolution.
The “large and frequent transactions,” according to the AMLC, “were not commensurate to the income declared by VP Binay in his Statement of Asset,Liabilities and Net worth (SALN) for said years.
The AMLC also observed other transactions in Binay’s other accounts, this time with Security Bank, PNB, RCBC Savings Bank – accounts under Binay’s name or owned jointly with Limlingan and Crystal from 2008 to 2012.
Transactions of Binay’s associates and alleged dummies – Limlingan and Binay’s long-time secretary Eduviges Baloloy – also don’t match their incomes, the CA resolution, quoting AMLC findings, said.
Limlingan received a monthly salary of P30, 000 in 2011 and 2012, the AMLC noted, citing figures from the Landbank of the Philippines. Baloloy, meanwhile, also got her salary from the Makati City government.
“The AMLC’s investigation would however disclose that in 2007 to 2014, cash deposit transactions, majority of which were in million of pesos, were applied to the individual and joint accounts maintained by Limlingan and Baloloy in BDO, Metrobank and Security Bank,” the CA resolution read.
Transactions flagged by the AMLC do not end there. The AMLC monitored “other large transactions made in 2007 to 2014 in the joint accounts maintained by Baloloy and Limlingan with other individuals likewise allegedly associated with VP Binay.”
The “individuals… allegedly associated with VP Binay” also had time deposits, money market instruments placements, regular trust fund contribution, placements and investments, and other money instruments from 2008 to 2014, the AMLC discovered.
The AMLC said Limlingan and Baloloy “started selling securities, conducted inter-account transfers within the same bank, pre-terminated their time deposits and investment placements, encashed checks and withdrew bank deposits” around the same time the Senate’s probe began.
Another alleged dummy of Binay, businessman Antonio Tiu, was also flagged by AMLC as having transactions that did not match his and his business’ income. Mercado himself had “considerable amounts of money” deposited to his accounts from 2007 to 2014.
