Banks developing central system to combat scams

The Bankers Association of the Philippines (BAP) is working on a central system that will allow lenders to coordinate in real time and stop suspicious transactions, as part of efforts to comply with the Anti-Financial Account Scamming Act (AFASA).

- KEISHA TA-ASAN

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Elmore Capule said banks have one year to roll out a "coordinated verification protocol" that would enable immediate blocking of funds once a client reports a scam.

"If a (victim) reports, the whole system should be alerted. That's the beauty of it," Capule told reporters. "The (system) will use big data and artificial intelligence so everything can be done real-time and fast."

The system will also feature a centralized database of accounts linked to fraudulent activities, making it easier for financial institutions to flag and block potential scam-related transfers.

Capule said the BAP has already presented an initial version to the BSP and expressed optimism that banks will meet the deadline next year.

At the same time, Capule stressed that AFASA carves out an explicit exemption from the country's bank secrecy laws, enabling authorities to open suspicious accounts and share information across institutions.

"The law is very explicit, that AFASA is an exception to bank secrecy," Capule said.