Rules proposed on temporary holding of disputed funds

The Bangko Sentral ng Pilipinas (BSP) has issued a draft circular outlining proposed regulations for the temporary holding of funds involved in disputed transactions, as part of its efforts to combat financial fraud and cybercrime.

- By KEISHA TA-ASAN

The draft rules seek to implement provisions of Republic Act 12010, or the Anti-Financial Account Scamming Act (AFASA), by requiring banks and financial institutions to temporarily hold disputed funds while a verification process is conducted.

Disputed funds are defined as funds or equivalent amounts subject to a disputed transaction, or funds that have moved through various Receiving Financial Institutions, subsequent-RFIs and financial accounts.