New Law Aims to Reduce Financial Scams: Republic Act No. 12010 – What You Need to Know
New Law Aims to Reduce Financial Scams in the Philippines
In a bid to combat the rising number of financial scams in the Philippines, the government has recently enacted Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act. This new law aims to protect the public from cybercriminals and criminal syndicates who target individuals’ financial accounts.
The law defines a financial account as any account used to avail of products or services offered by banks, nonbanks, financial institutions, and payment and financial service providers under the jurisdiction of the Bangko Sentral ng Pilipinas (BSP). This includes deposit accounts, credit card accounts, e-wallets, and other accounts used for financial services.
Under the Anti-Financial Account Scamming Act, financial institutions are now required to implement adequate risk management systems and controls to protect their clients’ accounts. This includes measures such as multifactor authentication, fraud management systems, and other verification processes. Institutions that comply with these requirements will not be held liable for any losses resulting from schemes like money muling activities or social engineering schemes.
Furthermore, the law empowers institutions to temporarily hold funds in suspicious accounts and report their actions to the BSP. The BSP is also granted the authority to investigate financial accounts involved in criminal activities, with only the Court of Appeals able to prevent such investigations.
With the implementation of this new law, the government hopes to reduce, if not eliminate, financial scams in the country. The BSP and other government agencies have been given one year to draft the implementing rules and regulations for the law, ensuring that it is effectively enforced. Financial scammers will now have to navigate tighter regulations and face consequences for their illegal activities.