Destruction by fire of 1,000 homes: a humanitarian tragedy and a financial crime opportunity.
A 49 second video published by Australia's ABC shows one of the most horrific fire scenes one can imagine.
Much of The Philippines remains mired in widespread poverty with many living, all over the country, in makeshift housing, often building a shelter (it's difficult to call many of them "a hut") on unlawfully occupied land.
Manila has significant areas of slums. This matters to us in financial crime risk because the slums are the recruiting areas for a wide of criminal gangs, including those producing child sexual abuse material, an iteration of the long-established supply of children for sex tourists which I wrote about in "How not to be a money launderer" in 1996 and it was far from a new problem then.
The people living in the slums must not be characterised as criminals or criminals-in-waiting. As in other countries with a similar problem, many dress up nicely and go out to work in proper, real-world, jobs. And they return home to at best a shack but not to squalor. Sanitation is rudimentary, disease is rife. But at least there is safety of sorts. And a genuine community.
Unless something catastrophic happens.
A fire in a slum at Manila docks has destroyed more than 1,000 homes. It spread with terrifying speed, engulfing wooden structures and sparing nothing.
There is unlikely to be any insurance for homes or contents. For many, nothing except the clothes they were wearing has been saved.
So far, the response has been muted: the authorities, always stretched, are overwhelmed but have found shelter for many. The cause is under investigation but in such conditions, it would not be surprising if it turns out to be a cooking fire.
The danger, of course, is that there will be a surge in fraud by those purporting to help.
So, globally, financial institutions should be wary of donations and be sure they are reaching legitimate, perhaps even established, charities. The history of such disasters in internet savvy communities is that it spawns crowdfunding schemes by fraudsters.
Help, if you wish, but be very cautious as to who receives your money.
The video is here: https://www.abc.net.au/news/2024-11-25/fire-in-slum-area-of-philippines…
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