BSP issues implementing rules for anti-financial account scamming law

THE BANGKO SENTRAL ng Pilipinas (BSP) has released circulars implementing the Anti-Financial Account Scamming Act (AFASA), which allows the regulator to probe financial accounts suspected to be involved in prohibited acts identified under the law.

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The BSP released three circulars that contain guidelines to implement the AFASA, which was signed into law by President Ferdinand R. Marcos, Jr. in July 2024. The law seeks to help prevent and penalize financial cybercrime.

The central bank is authorized investigate and inquire into financial accounts involved in prohibited acts or offenses under the AFASA. These include money mule activities and social engineering schemes, which could be considered economic sabotage if it involves three or more people as perpetrators or victims, mass mailers, or human trafficking, as well as other offenses such as opening a financial account under a fictitious name or using the identity or identification documents of another person.

Circular No. 1214 details the rules of procedure on the conduct of inquiry into financial accounts and sharing of financial account information by the BSP. Bank secrecy laws will not apply to the financial accounts under inquiry or investigation by the BSP.

Under the guidelines, requests to inquire into a financial account must be filed by competent authorities — which include the Philippine National Police, National Bureau of Investigation, Department of Justice, Anti-Money Laundering Council, Cybercrime Investigation and Coordinating Center, or any government agency authorized to investigate or prosecute prohibited acts under the AFASA, as well as financial regulators authorized to investigate crimes or offenses related to their respective regulatory functions and adjudicate financial consumer complaints — with the BSP’s Consumer Account Protection Office.