Anti-financial scam act can be used to tag bank accounts in flood mess

THE Anti-Financial Account Scamming Act (AFASA) can be used to tag bank accounts tied to the flood control scandal, but the measure has limits that may be broadened with the easing of the Bank Secrecy Law, the Bangko Sentral ng Pilipinas (BSP) said.

“One limitation of AFASA is that if we invoke our powers under AFASA, the information we gather here can only be used for investigating and prosecuting violations of AFASA,” BSP General Counsel Roberto L. Figueroa told reporters last Friday.

“The relaxation or the easing of the Bank Secrecy Law, that would be broader. It doesn’t have to be a violation of AFASA. It could be any kind of suspicious activity. And therefore, we could do something about it.”

Under the AFASA, the BSP is allowed investigate and inquire into financial accounts involved in prohibited acts or offenses under the law, which include money mule activities and social engineering schemes, mass mailers, or human trafficking, as well as other offenses such as opening a financial account under a fictitious name or using the identity or identification documents of another person.

While AFASA was originally intended to protect consumers from financial scams, the law can also be used to investigate financial accounts tied to the flood control scandal.

“So that’s a good side effect or an unintended consequence. But yes, and that’s why we still are pushing for the amendment to the bank secrecy law, because we believe that would be even broader in terms of the crimes or offenses that would be able to prevent,” Mr. Figueroa said.

In December, the House of Representatives approved on third and final reading a bill introducing amendments to the Philippine bank secrecy law, while its counterpart bill is pending second reading in the Senate.

While the BSP is optimistic that amendments to the Bank Secrecy law will be passed, the AFASA can still be used to prosecute corrupt politicians for crimes under the AFASA, Mr. Figueroa said.

“If you’re a money muler, corrupt politician, or a money launderer, chances are, you’re going to use a financial account. So AFASA can apply. But again, the distinction would be that if you’re invoking AFASA, it will just be for AFASA violations,” he said. — Aaron Michael C. Sy