BSP Issues Implementing Rules for the Anti-Financial Account Scamming Act
The Bangko Sentral ng Pilipinas (BSP) released the implementing rules of Republic Act No. 12010, otherwise known as the Anti-Financial Account Scamming Act (AFASA). AFASA is a landmark law signed by President Ferdinand Marcos, Jr. on July 20, 2024 which promotes the protection of consumers from financial cybercrime schemes and strengthening of the trust in the financial system.
“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.
AFASA seeks to prevent and curb the misuse of financial accounts in fraud and scams such as phishing and vishing. A “financial account” is defined by the Act as “an account used to avail of products or services offered by Institutions such as (1) an interest or non-interest-bearing deposit, trust, investment, or credit card account; (2) other transaction account maintained with a bank, non-bank, or financial institution; (3) e-wallet; and (4) any other account used to avail of financial products or services defined under Section 3(c) of Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act”.
Under the Act, financial account scamming may come in the form of (a) money muling activities, (b) social engineering schemes, and (c) economic sabotage. The Act also penalizes other related offenses such as (a) willful aiding, abetting, or attempt to commit any of the aforementioned prohibited acts; (b) opening a financial account under a fictitious name or using the identity or identification documents of another; or (c) buying or selling a financial account.
Implementing Rules for AFASA
The BSP issued three circulars to implement AFASA:
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Regulations on Information Technology (IT) Risk Management (BSP Circular No. 1213, series of 2025)
These regulations emphasize the responsibility of BSP-Supervised Institutions (BSIs) to mitigate fraudulent schemes done electronically by adopting aggressive security measures such as automated and real-time fraud monitoring and detection systems, transaction verification, and other relevant consumer protection tools. These provisions are reflected as an amendment to Section 148 and Appendix 126 of the Manual of Regulations for Banks (MORB), Sections 147-Q/145-S/142-P/126-N and Appendices Q-79/S-11/P-9/N-15 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), and Section 201, Glossary of Terms, and Appendix 201-1 of the Manual of Regulations for Payment Systems (MORPS).
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Rules on Financial Account Inquiry and Information Sharing (BSP Circular No. 1214, series of 2025)
These rules outline the BSP’s authority to investigate and inquire into financial accounts which may be involved or utilized in the commission of fraud and scams. Inquiries require a well-founded belief of a commission of a prohibited act or other offenses under AFASA. Financial information obtained during an inquiry may be shared to competent authorities by virtue of an information sharing agreement to prosecute criminal cases or to adjudicate a financial consumer complaint under the Financial Products and Services Consumer Protection Act.
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Regulations on Temporary Holding of Disputed Funds and Coordinated Verification Process (BSP Circular No. 1215, series of 2025)
BSIs are authorized to hold disputed funds for a period of not more than thirty (30) calendar days. Such period may be further extended only by a court of competent jurisdiction. When disputed funds are held, the equivalent amount shall be considered credited but cannot be withdrawn during the holding period. Simultaneously with the temporary holding of funds, BSIs and account owners shall initiate a coordinated verification process to validate a disputed transaction. In line with this, BSIs and clearing switch operators are mandated to implement real-time or near-real-time automated system to track disputed transactions within one year of the regulations’ effectivity.
AFASA takes effect with the release of the aforementioned implementing rules.