THE quintet against financial crimes and grifters is now complete after the Bangko Sentral ng Pilipinas (BSP) inked a deal with the Department of Justice (DOJ) on Wednesday-the fourth agency the central bank has joined forces with to maintain the public’s trust in the country’s banking industry.
Last Wednesday, officials of the central bank and the country’s Justice department signed an ‘information-sharing agreement’ to ‘strengthen’ the investigation and prosecution of financial account scams and related offenses under the Anti-Financial Account Scamming Act (Afasa) or Republic Act (RA) 12010.
BSP General Counsel Roberto L. Figueroa said the signing of the agreement goes beyond the execution of a legal instrument.
The agreement ‘marks an important milestone in strengthening the institutional framework through which our government protects the public against financial account scams,’ Figueroa said.
The central bank’s chief legal officer underscored the importance of signing this type of agreement against the backdrop of financial account scams, which he said ‘inflict damage that extends well beyond monetary loss.’
‘They undermine confidence in our financial system, exploit the trust of consumers and leave countless individuals and families bearing the consequences of sophisticated criminal activity,’ Figueroa added.
Moreover, he pointed out that as financial services become ‘increasingly’ digital and transactions occur with an ‘unprecedented’ speed, the institutions tasked with safeguarding the public must, likewise, be capable of responding with ‘speed, precision and close coordination.’
This, Figueroa stressed, is why Afasa is important. He explained that RA 12010 recognizes that addressing financial account scams requires more than the efforts of any single institution.
‘Even the BSP cannot do it alone. We need the help of everyone, of all institutions, individuals and groups in society,’ he added.
Figueroa explained that the Afasa establishes a legal framework that enables regulators, law enforcement agencies, prosecutors and covered institutions to work together while respecting the rule of law, due process and the safeguards that govern the handling of information.
As such, he considers the agreement as giving a ‘practical effect’ to the legal framework of the Afasa.
According to the central bank, the agreement establishes the procedures for the DOJ to request and receive financial account information from the BSP’s Consumer Account Protection Office, pursuant to the Afasa and the BSP Circular 1214.
According to the central bank, the agreement also sets out safeguards to ensure that shared information is used only for authorized purposes and protected in accordance with the law.
Figueroa added that the agreement supports the BSP’s mandate to ‘promote a safe, sound, stable and efficient financial system while reinforcing our efforts to protect financial consumers from financial fraud.’
‘Timely, relevant and lawfully shared information strengthens the ability of prosecutors to assess evidence, build cases and pursue accountability against those who exploit financial systems for financial gain,’ he added.
Meanwhile, Elmore O. Capule, the Deputy Governor for the Corporate Services Sector of the BSP, said that the number one obstacle to investigating scams is the Bank Secrecy Law or RA 1405.
‘So we were very fortunate that we were able to enact the Afasa, especially the power of the BSP to look into deposits,’ Capule said in his allocution during the ceremonial signing of the agreement.
He added that the agreement ‘sends a very strong message that the government is fighting as one to protect the Filipino public.’
Figueroa emphasized that ‘stronger institutional collaboration enhances our collective ability to identify organized actors who exploit the financial system, disrupt their operations and hold them accountable under the law.’
A statement distributed by the BSP read the central bank considers the agreement as promising ‘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,’ read the statement.
The agreement’s signing comes six months after BSP officials also signed information-sharing agreements with the National Bureau of Investigation, the Cybercrime Investigation and Coordinating Center and the Securities and Exchange Commission in February.