The Bangko Sentral ng Pilipinas (BSP) is ramping up efforts to combat financial fraud, emphasizing close cooperation between regulators and the private sector to secure the country’s digital economy. This push aligns with the recent implementation of the Anti-Financial Account Scamming Act (AFASA), which empowers the BSP to investigate and act against fraudulent financial activities more effectively.
At the FinTech Alliance.PH Digital Industry Caucus and Manila Tech Summit Media Launch on June 24, 2025, BSP Deputy Governor Chuchi Fonacier highlighted the importance of a unified approach. “Continuing engagement with industry players such as the Fintech Alliance is crucial in fostering a shared understanding of risks, financial inclusion goals, and market conduct expectations,” she said.
Under AFASA, the BSP now has authority to probe suspicious accounts involved in scams, money mule operations, and other illicit schemes, overriding traditional bank secrecy laws to enhance enforcement. The central bank has issued circulars requiring BSP-supervised financial institutions (BSFIs) to implement advanced fraud detection systems. These systems combine rule-based algorithms, machine learning, and real-time monitoring to identify and temporarily hold suspicious transactions.
Additionally, BSFIs must adopt stronger authentication methods, including biometric and behavioral biometrics, moving beyond vulnerable one-time passwords (OTPs). The BSP’s framework also establishes coordinated verification processes for disputed transactions, facilitating swift resolution through collaboration among banks, law enforcement, and customers.
While the BSP leads regulatory efforts, FinTech Alliance.PH supports these initiatives by fostering dialogue and innovation. During the event, the Alliance submitted a white paper proposing the creation of an industry-led fraud bureau to serve as a centralized hub for fraud detection and response. The Alliance also welcomed four new members, reflecting growing momentum in the fintech sector.
With these measures, the BSP aims to strengthen cyber resilience, protect consumers, and promote financial inclusion. Deputy Governor Fonacier’s call for ongoing collaboration underscores that tackling financial fraud requires a shared commitment across the entire financial ecosystem.
As the Philippines implements these enhanced safeguards, it sets a strong example in the region for securing a more inclusive and trustworthy digital economy.
