The Bangko Sentral ng Pilipinas (BSP) has issued the implementing rules and regulations (IRR) of Republic Act No. 12010, or the Anti-Financial Account Scamming Act (AFASA), marking a significant step in curbing financial fraud and enhancing consumer protection.
Signed into law by President Ferdinand R. Marcos, Jr. in July 2024, AFASA officially takes effect with the release of the IRR. The BSP spearheaded the drafting of the rules in collaboration with key stakeholders across the financial and law enforcement sectors.
BSP Governor Eli M. Remolona, Jr. hailed the issuance as “a milestone in our fight against cybercrime,” emphasizing that the regulations will serve as a “powerful tool against evolving financial scams,” while reinforcing public trust in the Philippine financial system.
Three BSP circulars operationalize AFASA:
- IT Risk Management Regulations
These guidelines require BSP-Supervised Institutions (BSIs) to bolster fraud prevention measures, including improved security protocols, transaction verification systems, and consumer protection features. - Rules on Financial Account Inquiry and Information Sharing
These provide the BSP authority to investigate financial accounts suspected of involvement in scams, subject to a well-founded belief of a violation. The framework ensures a balance between law enforcement, data privacy, and bank secrecy, enabling BSP to share pertinent data with authorized agencies. - Regulations on Temporary Holding of Disputed Funds
BSIs must implement systems to monitor disputed transactions and may hold suspect funds for up to 30 days. Coordination with relevant parties is required to verify and potentially return funds to defrauded consumers.
AFASA defines and penalizes modern financial fraud schemes—including phishing, vishing, social engineering, and money muling—that exploit technological loopholes previously unaddressed by existing cybercrime laws.
The BSP urged the public to remain vigilant, protect their financial credentials, and immediately report suspicious activity to their banks or relevant authorities.
