BSP, DOJ Ink Deal to Bolster Fight Against Financial Scams

The Bangko Sentral ng Pilipinas (BSP) and the Department of Justice (DOJ) on Wednesday signed an information-sharing agreement (ISA) aimed at speeding up the investigation and prosecution of financial account scams. The agreement supports the implementation of Republic Act No. 12010 or the Anti-Financial Account Scamming Act (AFASA), signed into law in July 2024, to strengthen the government’s response to online scams and other cyber-enabled financial crimes. What is the Information Sharing Agreement? The agreement sets guidelines and procedures for the DOJ to request and receive financial account information from the BSP’s Consumer Account Protection Office (CAPO) in cases involving suspected financial account scams. It also establishes safeguards to ensure that information shared between the two agencies is used only for authorized purposes and protected in accordance with the law. Simply put, the agreement creates an operational framework that allows prosecutors and the central bank to exchange information more efficiently in investigating and prosecuting scam-related cases. What is the connection with AFASA? AFASA authorizes the BSP, through CAPO, to inquire into financial accounts suspected of being involved in scams. The law also provides mechanisms for government agencies to coordinate in investigating and prosecuting financial crimes. The information-sharing agreement establishes a formal process through which DOJ prosecutors can obtain financial account information gathered by the BSP to support investigations and prosecutions. While the BSP regulates banks and other financial institutions and exercises inquiry powers under AFASA, the DOJ is responsible for the investigation and prosecution of criminal offenses and the filing of appropriate charges in court. “By aligning DOJ’s prosecutorial mandate with the BSP’s inquiry powers under the AFASA, we close gaps that criminals exploit and speed justice for victims of cyber-enabled financial abuse,” DOJ Undersecretary Nicholas Felix Ty said during the signing ceremony in Manila. What does this mean for consumers? According to the BSP, the agreement is expected to speed up coordination between authorities, helping them trace suspicious transactions and identify individuals behind scam operations more quickly. This could also help prevent more people from falling victim to fraud. “For Filipinos, this means quicker action against online scams. Competent authorities will be able to trace and identify individuals behind suspicious transactions faster and help prevent further losses due to fraud,” the BSP said.— MCG, GMA News