The Bangko Sentral ng Pilipinas (BSP) said Wednesday it released the implementing rules of Republic Act No. 12010 or the Anti-Financial Account Scamming Act (AFASA) to fortify defenses against financial scams and enhance consumer protection.
Signed by President Ferdinand Marcos Jr. in July 2024, the law takes effect with the release of the implementing rules. The BSP led the drafting in coordination with relevant stakeholders.
“The issuance of AFASA’s implementing rules marks a milestone in our fight against cybercrime. Beyond serving as a powerful tool against evolving financial scams, these rules also enhance consumer protection and boost confidence in the domestic financial system,” BSP Governor Eli Remolona Jr. said.
The BSP released three key circulars to put the AFASA into effect. These measures are designed to combat financial fraud and protect consumers.
First, the Information Technology (IT) Risk Management Regulations reinforce the responsibility of BSP-supervised institutions (BSIs) to beef up their fraud prevention and detection systems. This means BSIs should enhance security features, transaction verifications, and consumer protection tools, among other things, to prevent unauthorized transactions.
Second, the Rules on Financial Account Inquiry and Information Sharing outline the BSP’s authority to investigate financial accounts connected to scams.
Such inquiries require a well-founded belief that an AFASA violation has occurred, striking a balance between bank secrecy, data privacy, and the needs of law enforcement. The BSP can share financial data obtained during an inquiry with other competent authorities under formal agreements.
Lastly, the Regulations on Temporary Holding of Disputed Funds and Coordinated Verification Process mandate BSIs, including clearing switch operators, to implement an automated system within one year to track disputed transactions in real-time or near real-time. Under these rules, BSIs can hold disputed funds for up to 30 days, coordinate transaction verification, and return disputed funds to defrauded consumers when appropriate.
AFASA aims to prevent the misuse of financial accounts in fraud and scams like phishing and vishing. It also defines and penalizes social engineering schemes, money muling activities, and related offenses. These include those committed using advances in technology, which were previously not covered by existing cybercrime laws in the Philippines.
The BSP asked the public to stay vigilant, safeguard their financial credentials and promptly report suspicious transactions to BSIs or appropriate authorities.
