AFASA: Beyond protection

The digital transformation of financial services in the Philippines has been both rapid and profound.

- LITO VILLANUEVA

From inclusive banking solutions reaching underserved communities to record-breaking adoption of e-wallets and digital credit, our fintech ecosystem has surged ahead, often faster than the regulations that aim to safeguard it.

But as innovation scales, so do the risks. With the rise of cybercrime, particularly scams that exploit digital channels, the signing of the Anti-Financial Account Scamming Act (AFASA) into law in July 2024, and the subsequent release of the Bangko Sentral ng Pilipinas (BSP)'s implementing circulars in 2025, mark a critical turning point for the digital finance industry. This is not just about enforcement. It's about ushering in a new era of trust, accountability, and shared responsibility in our financial ecosystem.

Let's be clear: AFASA isn't just a tool for punishing scammers. It is a legal recognition that financial cybercrime is economic sabotage. When scammers exploit unsuspecting Filipinos through money mules, fake accounts, or social engineering, they erode the very trust that underpins the digital economy.

The newly released BSP Circulars 1213, 1214, and 1215 represent a cohesive operational framework to turn this law into action. They address everything from the rules of inquiry into suspicious accounts, to the coordinated holding of disputed funds, to strengthening fraud detection through advanced IT risk management.

This is institutional muscle finally catching up to the velocity of digital crime. But it's also a moment that demands reflection and reform from every player in the ecosystem, especially the private sector.

Circular 1214 enables the BSP to pierce the veil of bank secrecy when investigating suspicious accounts under AFASA. This is a game-changer in tackling layered scams involving identity fraud and synthetic accounts. It empowers competent authorities, including the PNP, NBI, AMLC and even other financial regulators, to collaborate in real time.