The Bangko Sentral ng Pilipinas (BSP) on Wednesday unveiled the implementing rules and regulations for Republic Act No. 12010, known as the Anti-Financial Account Scamming Act (AFASA), a landmark law aimed at combating financial fraud, safeguarding consumers, and reinforcing trust in the Philippine financial system.
The AFASA, signed into law by President Ferdinand R. Marcos, Jr. in July 2024, takes effect immediately with the formal release of the implementing rules. The BSP, in coordination with various stakeholders, led the drafting of these regulations to address the growing concerns of financial scams and cybercrime.
A Milestone in the Fight Against Cybercrime
In a statement, BSP Governor Eli M. Remolona, Jr. emphasized the significance of this development: “The issuance of AFASA’s implementing rules marks a milestone in our fight against cybercrime. Beyond serving as a powerful tool to counter evolving financial scams, these regulations also bolster consumer protection and enhance confidence in the Philippines’ financial system.”
The implementing rules are designed to address various forms of financial fraud, including phishing, vishing, social engineering schemes, and money muling, which have increasingly exploited digital platforms. AFASA’s regulations ensure that perpetrators who misuse financial accounts for fraudulent purposes are held accountable.
Three Key Circulars to Implement AFASA
To operationalize AFASA, the BSP has issued three key circulars:
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Information Technology (IT) Risk Management Regulations
These regulations require BSP-Supervised Institutions (BSIs) to bolster fraud prevention and detection systems. BSIs must enhance security features, implement transaction verifications, and adopt consumer protection measures to reduce the risk of unauthorized transactions. -
Rules on Financial Account Inquiry and Information Sharing
These rules provide the BSP with the authority to investigate financial accounts suspected of being involved in scams. While safeguarding bank secrecy and data privacy, the BSP can share financial information with relevant authorities under formal agreements, ensuring that investigations are balanced and in compliance with the law. -
Regulations on Temporary Holding of Disputed Funds and Coordinated Verification Process
Under these regulations, BSIs, including clearing switch operators, must implement a system to monitor disputed transactions in real-time or near-real-time. Disputed funds may be held for up to 30 days while transactions are verified. If fraud is confirmed, the funds will be returned to the rightful consumer.
A Stronger Legal Framework for Consumer Protection
AFASA aims to close the gaps in existing laws by specifically targeting financial crimes involving modern technology. It addresses offenses like phishing, vishing, and social engineering that have been rampant in the digital age but were not previously covered by Philippine cybercrime laws.
The law provides clear penalties for individuals involved in illegal activities, including money laundering, scamming, and data breaches linked to financial accounts. It is a comprehensive step toward creating a more secure and transparent financial environment for all Filipinos.
Public Call for Vigilance and Awareness
The BSP also urges the public to remain vigilant against emerging scams and to take proactive measures in safeguarding their financial information. Consumers are encouraged to promptly report suspicious transactions to their respective financial institutions or the relevant authorities.
“We must all be vigilant in this fight against financial scams. Consumers must take necessary precautions, and financial institutions must stay ahead of cybercriminals to protect the public,” said Governor Remolona.
The implementation of AFASA is a key step toward making the Philippines’ financial system more resilient to cyber threats and fraud while ensuring that consumers can engage in financial transactions with greater confidence.
