The FinTech Alliance Philippines has expressed strong support for the Bangko Sentral ng Pilipinas (BSP) as it uses the Anti-Financial Account Scamming Act (RA 12010) for the first time in its investigation of individuals involved in the country’s flood-control corruption scandal.
The BSP’s probe targets money muling activities criminalized under AFASA, such as the use of financial accounts to move proceeds from illegal activities. This includes BSP Circular No. 1215, which requires regulated institutions to temporarily freeze suspicious funds.
Lito Villanueva, Founding Chairman of FinTech Alliance PH, emphasized, “This is a crucial step in protecting the integrity of our financial system. AFASA’s enforcement will ensure justice is served and shield ordinary Filipinos from being exploited in financial crimes.”
Enacted in June 2025, AFASA gives the BSP the authority to investigate accounts linked to scams or fraud, even overriding bank secrecy and data privacy laws in such cases. This marks a significant move in the country’s fight against financial crime.
The Alliance also stressed the importance of collaboration among regulators, banks, and fintech companies. “We are committed to working closely with regulators to advance both consumer protection and financial innovation,” they stated.
Violations of AFASA can lead to penalties of six to eight years in prison, fines of ₱100,000 to ₱500,000, and asset forfeiture.
This action complements other government efforts, including the Court of Appeals’ freeze order on accounts related to the case, initiated by the Anti-Money Laundering Council (AMLC).
With AFASA now fully in effect, the Philippines takes a crucial step toward a transparent and fraud-resistant financial system, aligned with global standards.