The Central Bank of the Philippines has issued the implementing rules for Republic Act No. 12010, the Anti-Financial Account Scamming Act (AFASA), setting out supervisory requirements intended to prevent and address financial account scams and strengthen consumer protection in the domestic financial system. The law was signed in July 2024 and was set to take effect upon issuance of the implementing rules. Implementation is delivered through three circulars. First, updated information technology risk management rules place responsibility on BSP-supervised institutions (BSIs) to strengthen fraud prevention and detection, including enhanced security features, transaction verification, and consumer protection tools to prevent unauthorized transactions. Second, financial account inquiry and information-sharing rules operationalise the BSP’s authority to investigate scam-related accounts, requiring a strong and clear basis of an AFASA violation to balance bank secrecy, data privacy, and law enforcement needs, and allowing the BSP to share inquiry-derived financial data with competent authorities through a formal agreement. Third, rules on temporary holds and verification require BSIs, including clearing switch operators, to implement real-time or near real-time automated capabilities to trace disputed transactions within one year from the regulations’ effectivity, permit holds on disputed funds for up to 30 days, and set expectations for coordinated verification and return of funds to defrauded consumers where warranted. AFASA targets the improper use of financial accounts for scams such as phishing and vishing and covers penalties for social engineering schemes, money muling activities, and related offences, including those enabled by technological advances. The BSP also urged the public to protect financial credentials and promptly report suspicious transactions to BSIs or relevant authorities.
Central Bank of the Philippines 2025-06-11
Central Bank of the Philippines issues Anti-Financial Account Scamming Act rules including IT risk controls and 30-day holds on disputed funds
The Central Bank of the Philippines has issued rules for Republic Act No. 12010, the Anti-Financial Account Scamming Act (AFASA), to prevent scams and enhance consumer protection. The rules include updated IT risk management, financial account inquiry and information-sharing, and temporary holds and verification requirements for BSP-supervised institutions. AFASA addresses scams like phishing and vishing, imposing penalties for social engineering and money muling activities.