Central Bank of the Philippines issues three circulars implementing the Anti-Financial Account Scamming Act including real-time scam detection and 30-day fund holds

The Central Bank of the Philippines has published implementing rules for Republic Act No. 12010, the Anti-Financial Account Scamming Act (AFASA), issuing three circulars that operationalise the law signed in July 2024. The package sets new obligations for BSP-supervised institutions to prevent and respond to financial account scams, alongside a framework for account inquiries linked to suspected AFASA violations. The circulars cover strengthened information technology risk management controls to better detect and block suspicious transactions, including enhanced security features, more rigorous transaction verification, and added consumer protections to curb unauthorised transactions. They also set rules for BSP financial account inquiries and information sharing, requiring a sufficient basis for a suspected AFASA violation while balancing bank secrecy, data privacy and law enforcement considerations, and allowing account information to be shared with authorities that have a formal agreement with the BSP. A third circular requires BSP-supervised institutions, including clearing switch operators, to deploy real-time or near-real-time automated systems to identify questionable transactions within one year from the regulation’s effectivity, and permits temporary restrictions on fund movements for up to 30 days to support coordinated verification and, where necessary, the return of funds to scam victims.