Republic Act 12010, also known as the “Anti-Financial Account Scamming Act” (Afasa), has recently been signed into law. This legislation, filed by Sen. Mark Villar, seeks to protect consumers against financial cybercrimes and social engineering (scam texts and emails),
President Ferdinand Marcos Jr. said that the law aligns with the government’s digitization initiatives. Afasa mandates financial institutions to implement necessary guardrails in response to the growing number of scams and fraudulent text messages in the Philippines.
The Bangko Sentral ng Pilipinas (BSP) has been given the authority to investigate and inquire into financial accounts suspected of being involved in prohibited activities. This includes the authority to apply for warrants for cases involving electronic communications. BSP officials have expressed hope that this law will enhance the protection of financial consumers’ interests.
Under the new law, the BSP has limited authority to examine and investigate bank accounts, e-wallets, and other financial accounts implicated in financial crimes. Responsible institutions can hold disputed funds under specific conditions and initiate a verification process to validate the transactions in question.
Afasa also requires BSP-supervised institutions to implement reliable risk and fraud management systems to safeguard their clients’ financial accounts. The law mandates cooperation among government agencies, banks, financial institutions, the private sector, and other stakeholders to ensure the effective prosecution of cases and enforcement of the law.