Bangko Sentral ng Pilipinas (BSP) has opened an inquiry into the bank accounts of individuals implicated in the Philippines’ flood-control corruption controversy, invoking the Anti Financial Account Scamming Act (AFASA) and its implementing rules that took effect in June. The action, initiated following an official request from Department of Public Works and Highways Secretary Vince Dizon, targets “money muling activities” and marks the BSP’s first use of AFASA to support wider investigations and prosecutions. Under Section 4(a) of AFASA, money muling includes using a financial account to obtain, receive, deposit, transfer or withdraw proceeds known to be derived from crimes. The BSP also reminded supervised institutions to comply with the temporary holding of funds requirements in Section 7, as implemented by BSP Circular No. 1215 (series of 2025). AFASA authorises the BSP to inquire into relevant accounts notwithstanding deposit secrecy and data-privacy laws, and information obtained may be used for AFASA-related investigations or prosecutions. Penalties for money muling include imprisonment of six to eight years and/or a fine of PHP 100,000 to PHP 500,000, alongside potential restitution and civil forfeiture of assets used in the prohibited acts. The inquiry comes alongside a Court of Appeals freeze order on related accounts following a petition by the Anti-Money Laundering Council.

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