Fintech firms back new antifraud law
The Philippines’ major fintech firms are throwing their support behind the government’s first use of the newly enacted Anti-Financial Account Scamming Act (Afasa). The law is now being tested in a high-profile corruption case tied to flood control projects.
“This is a decisive step toward safeguarding the integrity of our financial system,” said Lito Villanueva, founding chair of Fintech Alliance Philippines.
“Effective enforcement of Afasa will not only help bring perpetrators to justice but also protect ordinary Filipinos from being exploited as unwitting participants in financial crimes,” Villanueva said in a statement.
Acting on a request from Public Works Secretary Vince Dizon, the Bangko Sentral ng Pilipinas has opened an inquiry into accounts linked to alleged irregularities in flood control projects. This was done using BSP powers under the Afasa.
The probe zeroes in on suspected money-muling—bank accounts allegedly used to move or disguise criminal proceeds. It comes alongside a Court of Appeals freeze order that the Anti-Money Laundering Council sought.
The court froze 135 bank accounts and 27 insurance policies connected to individuals and companies allegedly involved in irregularities in flood control projects.
The AMLC was acting on a letter from Dizon, which listed the names of 20 officials of the Department of Public Works and Highways and six private contractors. They include those that the Senate blue ribbon committee is investigating for suspected graft in flood control projects.
Under Afasa, bank secrecy and data privacy protections are set aside, allowing regulators to scrutinize suspect accounts and use findings in criminal prosecutions.
Penalties for money muling include imprisonment of six to eight years and a fine of P100,000 to P500,000. A conviction also carries civil liabilities, which may include restitution for damage and forfeiture of assets used in criminal acts.
The Fintech Alliance said the BSP’s use of Afasa was a clear signal that regulators, banks and digital players are aligned in the fight against financial crime.
“Collaboration is key,” Villanueva said. “We stand ready to work closely with regulators to ensure consumer protection and financial innovation advance together.”
