MANILA, Philippines — The Securities and Change Fee (SEC) has warned customers of e-wallets and comparable monetary platforms in opposition to lending their accounts to different individuals as they could be utilized for cash muling actions.
The SEC has urged the general public, particularly people and firms with registered financial institution accounts, e-wallets equivalent to GCash and Maya, on-line monetary platforms equivalent to Palawan Categorical or different monetary accounts, to not share, lend, hire out or permit different individuals or entities to make use of their private monetary accounts.
The company stated people or corporations with these monetary accounts could also be used as cash mules by legal syndicates to perpetrate numerous monetary scams.
Specifically, they could be used as mule accounts or for cash muling actions in monetary scams, together with advance charge mortgage scams, Ponzi schemes, unlawful investment-taking schemes, cash laundering actions and different unlawful actions.
The SEC stated that mule accounts or cash muling actions, equivalent to permitting financial institution accounts, e-wallets and different on-line monetary platforms for use by different individuals or entities for the aim of acquiring, receiving, depositing, transferring or withdrawing proceeds which are derived from crimes, offenses or social engineering schemes, are prohibited below the Anti-Monetary Account Scamming Act.
“Anybody caught as cash mules or discovered to be participating in cash muling actions could face imprisonment of as much as 14 years or a superb of as much as P5 million, or each on the discretion of the court docket,” the fee stated.
E-wallet big GCash earlier stated that it has been working with legislation enforcement companies to arrest fraudsters encouraging cash mule exercise.
Additional, GCash stated that it rejects or proactively bars accounts detected for use for mule exercise.
In the meantime, the SEC stated that individuals or teams claiming to signify or be affiliated with lending or financing corporations registered with the fee have been discovered to be victimizing the general public by a scheme referred to as advance charge mortgage rip-off.
Beneath such scheme, victims are required to pay a specific amount in trade for the discharge of a mortgage.
Based on the SEC, victims are drawn into paying the quantity requested as they’re promised that the advance fee can be returned as a part of the loaned quantity.
Nonetheless, upon fee, the SEC stated that the mortgage wouldn’t be launched and extra causes could be given to the sufferer to get extra funds in trade for the discharge of the cash.
“The fee hereby informs the general public that registered lending and financing corporations don’t require advance charges, funds or proof of capability to pay by giving an advance fee,” the SEC stated.
“Any charges imposed by lending or financing corporations within the processing of mortgage functions are deducted from the quantity loaned and what the applicant will obtain is internet of the quantity loaned. Candidates should not required to make an advance fee, for no matter cause, as a situation for the discharge of the mortgage,” it stated.
The SEC is strongly advising the general public to not transact with any individual claiming to signify a registered lending or financing firm that requires them to pay out money in trade for the approval or launch of their loans.
It stated that claims that advance fee is required by the SEC previous to the discharge of a mortgage are false and opposite to legislation.
“Individuals who encounter one of these rip-off shouldn’t make any fee however instantly report the incident to the Philippine Nationwide Police, Nationwide Bureau of Investigation and the SEC,” the fee stated.