President Ferdinand Marcos Jr. recently signed into law 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 financial system.”
The AFASA, referred to as the anti-scam law, also prohibits and punishes financial crimes such money “mules,” performing social engineering schemes and committing economic sabotage.
Under the provision of AFASA, the Bangko Sentral ng Pilipinas (BSP) has been authorized 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).
The AFASA law also gives “limited” authority for the BSP to examine and investigate bank accounts, e-wallets and other financial accounts that are involved in the prohibited acts.
Under certain conditions, responsible institutions are also given the authority to hold disputed funds in financial accounts and initiate a coordinated verification process to validate the disputed transactions.
The law imposes responsibilities on BSP-supervised institutions to employ adequate risk and fraud management systems to ensure that their clients’ financial accounts are protected.
Further, 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.
To summarize, Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act (AFASA) was signed in July 2024. This law aims to protect Filipinos from financial cybercrimes. Here are some of its key features:
- Penalizes financial crimes: AFASA defines and penalizes various financial scams, including acting as a money mule, social engineering schemes, and online investment scams.
- Strengthens bank security: The law compels banks and other financial institutions to implement stricter security measures to safeguard accounts.
- Gives investigation power to BSP: The BSP is authorized to investigate suspected violations of AFASA. This includes the ability to inquire into financial accounts and apply for warrants to access electronic communications.
- Encourages cooperation: AFASA mandates cooperation among government agencies, banks, and other stakeholders to effectively enforce the law and prosecute offenders.
