PH central bank welcomes new anti-financial account scamming law

It authorises the BSP to investigate cases violating law, amongst others.

The Philippine central bank has welcomed the passage of Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act (AFASA).

The law aims to combat financial cybercrimes, safeguard the interests of financial consumers, and uphold the integrity of the financial system, the Bangko Sentral ng Pilipinas (BSP) said in a press statement.

BSP Governor Eli M. Remolona, Jr. said that the new law will help the BSP strengthen consumer protection and “foster trust and confidence in the Philippine financial system.”

“We express our full support for the new anti-financial account scamming law,” Remolona stated.

AFASA authorizes 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 (NBI) and the Philippine National Police (PNP) in the investigation of cases.

It includes limited authority for the BSP to examine and investigate bank accounts, e-wallets, and other financial accounts 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. 

BSP-supervised institutions are required to employ adequate risk and fraud management systems.

Government agencies, banks and covered financial institutions, the private sector, and other stakeholders are mandated to establish a cooperative mechanism for the prosecution of cases and enforcement of the law.