Speaker Martin Romualdez lauded the enactment of a landmark legislation designed to combat economic fraud and protect citizens from financial scams.
The Anti-Financial Accounts Scamming Act (AFASA), or Republic Act 12010, was signed into law by President Ferdinand Marcos Jr. in a ceremony held at Malacañang Palace recently.
Romualdez emphasized the importance of the new law in safeguarding the integrity of the country’s financial systems and protecting the public from fraudulent schemes.
“The signing of AFASA marks a significant milestone in our fight against financial fraud and cybercrime,” the veteran legislator said.
“This law provides stringent measures to regulate financial accounts and prevent their misuse, ensuring that our financial systems remain secure and trustworthy,” the seasoned lawmaker explained.
The leader of the 300-plus members House of Representatives commended President Marcos for his leadership and commitment to protecting the Filipino people.
“We commend President Marcos for signing this vital legislation into law. His dedication to combating financial crimes and ensuring the safety of our financial systems is evident in the enactment of AFASA,” he said.
AFASA aims to prevent financial scams, including money muling, social engineering schemes, and economic sabotage.
The law provides comprehensive safeguards for financial account owners, requiring financial institutions to implement secure access systems and be liable for restitution if they fail to protect accounts adequately.
“The AFASA introduces essential protections for financial account owners and holds financial institutions accountable for any lapses in security.”
“The AFASA introduces essential protections for financial account owners and holds financial institutions accountable for any lapses in security,” Romualdez said.
“Mandating robust risk management systems and controls fosters a safer environment for all financial transactions,” he added.
The law grants the Bangko Sentral ng Pilipinas (BSP) extensive powers to enforce its provisions, including investigating financial accounts involved in fraudulent activities and applying for cybercrime warrants.
The BSP is also tasked with promulgating the implementing rules and regulations within one year of the law’s effectivity.
Romualdez noted the severe penalties imposed under AFASA for various financial crimes, underscoring the government’s commitment to deter such activities.
“The penalties under this law are designed to serve as a strong deterrent against financial fraud and cybercrime, reflecting our commitment to upholding justice and protecting our citizens,” he said.
Violations of AFASA carry severe penalties. Money muling can result in 6 to 8 years of imprisonment and fines ranging from P100,000 to P500,000.
Social engineering schemes can lead to 10 to 12 years of imprisonment and fines between P500,000 and P1 million, with harsher penalties for targeting senior citizens, which is 12 to 14 years of imprisonment and fines of P1 million to P2 million. Economic sabotage can result in life imprisonment and fines from P1 million to P5 million.
Other offenses carry various jail terms and fines, including disqualification from holding public office for government officials.
The Regional Trial Court will handle AFASA violations if any part of the offense occurs within the Philippines or affects individuals or accounts within the country.
Romualdez cited the long-term impact of AFASA on the country’s economic stability and growth.
“A secure financial system is crucial for sustaining economic development and attracting investment. With AFASA in place, we are sending a strong message that the Philippines is committed to maintaining a safe and transparent financial landscape,” he pointed out.
“This will not only deter criminal activities but also promote a culture of integrity and accountability across all levels of our financial system.”
“This will not only deter criminal activities but also promote a culture of integrity and accountability across all levels of our financial system,” Romualdez added.
He called for continued vigilance and cooperation from all sectors to ensure the successful implementation of AFASA.
“Our work does not end with the signing of this law. It requires ongoing vigilance, cooperation, and commitment from everyone—government agencies, financial institutions, and the public,” Romualdez said.
“Together, we can create a financial system that is not only secure but also fosters trust and confidence among all Filipinos,” he concluded.
