Central Bank of the Philippines issues Anti-Financial Account Scamming Act implementing rules including account inquiries and 30-day holds on disputed funds

The Central Bank of the Philippines (BSP) released the implementing rules for Republic Act No. 12010, the Anti-Financial Account Scamming Act (AFASA), bringing the law into effect and setting out new anti-scam and consumer protection obligations for BSP-supervised institutions. Implementation is set out across three BSP circulars. Updated information technology risk management regulations require BSP-supervised institutions to strengthen fraud prevention and detection, including enhanced security features, transaction verification, and consumer protection tools to curb unauthorized transactions. Separate rules on financial account inquiry and information sharing define the BSP’s authority to inquire into financial accounts linked to scams based on a well-founded belief of an AFASA violation, and allow sharing of data obtained in an inquiry with competent authorities under formal agreements. Regulations on temporary holding of disputed funds and a coordinated verification process require BSP-supervised institutions, including clearing switch operators, to implement a real-time or near-real-time automated system to track disputed transactions within one year of the regulations taking effect, permit holding disputed funds for up to 30 days, and provide for coordinated verification and return of funds to defrauded consumers when warranted.