Banks ordered to fast-track processing of veterans’ checks

Phillipines

WORLD WAR II veterans could expect an easier time at the banks when they encash their checks from the United States government after the central bank said they need not be subjected to strict "know-your-customer" procedures.

"In order to facilitate the well-deserved compensation of Filipino World War II veterans… banks are enjoined to take the necessary measures to expedite the negotiation of checks presented by World War II veterans… from the US Department of Veterans Affairs (USDVA)," Nestor V. Espenilla, Bangko Sentral ng Pilipinas (BSP) deputy governor, said in Circular Letter 41 dated May 12.

The BSP said it has received reports of veterans turned away by banks, especially those outside Metro Manila, which are smaller and cautious in encashing checks.

While banks may be overly cautious, given the large sums involved, they are assured that the checks, provided they are genuine, are safe and would not bounce, the central bank said.

This should make them more accommodating of veterans who do not maintain deposits with them.

"While it is understood that banks are expected to observe appropriate KYC (know-your-customer) measures, their support is… crucial in ensuring the shortest reasonable period for completing the process for negotiated checks," Mr. Espenilla said in the circular.

US President Barack Obama signed the $787-billion American Recovery and Reinvestment Act in February to pump prime the US economy.

This stimulus package earmarked close to $200 million as compensation to around 18,000 surviving Filipino World War II veterans living in the US, and 30,000 veterans living in the Philippines.

Veterans who are non-US citizens will receive $9,000, and US citizens, $15,000.

The BSP said the checks are thoroughly examined by the US government before they are sent out.

Each check is then delivered personally to veterans by a courier service directly hired by the USDVA, to ensure these are received by the correct persons.

US Embassy officials said about 2,000 veterans have received their checks from the US government as of the end of last month.

The USDVA has been giving out checks in batches worth $4 million, twice a month, since March.

Around 200,000 Filipino soldiers are estimated to have fought together with American forces to resist the Japanese occupation of the Philippines during the Second World War. — Paolo Luis G. Montecillo