The Bangko Sentral ng Pilipinas (BSP) recently welcomed the passage of Republic Act No. 12010 or the “Anti-Financial Account Scamming Act” (AFASA), which aims to combat financial cybercrimes, safeguard the interests of financial consumers, and uphold the integrity of the country’s economic system.
Financial cybercrime or the act of obtaining financial gain through profit-driven criminal activity
Cybercrime in finance is defined as the act of obtaining financial gain through profit-driven criminal activity, including identity fraud, ransomware attacks, as well as email and Internet fraud. It attempts to steal financial accounts, credit cards, or other payment card information.
“We express our full support for the new anti-financial account scamming law. This will help us strengthen consumer protection and foster trust and confidence in the Philippine financial system,” stated BSP Governor Eli M. Remolona, Jr. in a media advisory.
Earlier this year, the BSP governor also emphasized the central bank’s commitment to strengthening the country’s financial system through the development of Philippine capital markets. This initiative aims to enhance the resilience of the financial system, ensuring it can better withstand external shocks and maintain stability.
BSP Says New Law to Punish Financial Cyber Crimes
The AFASA, or “An Act Defining and Penalizing Financial Account Scamming and Other Offenses, and Providing for the Enforcement Mechanisms Therefor,” prohibits and punishes financial crimes, such as acting as money mules, performing social engineering schemes, and committing economic sabotage.
The law also authorizes the BSP to investigate cases involving violations of the law, apply for cybercrime warrants and orders, and request the assistance of the National Bureau of Investigation and the Philippine National Police in the investigation of cases.
Likewise, it includes a limited authority for the BSP to examine and investigate bank accounts, e-wallets, and other financial accounts that are involved in the prohibited acts.
Responsible institutions are also given the authority to hold disputed funds in financial accounts under certain conditions, as well as initiate a coordinated verification process to validate the disputed transactions.
Moreover, AFASA imposes responsibilities on BSP-supervised institutions to employ adequate risk and fraud management systems to ensure that their clients’ financial accounts are protected.
Government agencies concerned, banks and covered financial institutions, the private sector, and other stakeholders are mandated to establish a cooperative mechanism to ensure effective prosecution of cases and enforcement of the law.
The AFASA aligns with the BSP’s goals of promoting a strong financial system and an efficient, safe, and secure digital payments ecosystem that supports the diverse needs and capabilities of individuals and firms.