Published 11 April 2025, The Daily Tribune
In Part 1 of this series, we discussed how Republic Act 12010, or the Anti-Financial Account Scamming Act (AFASA), empowers financial institutions to act swiftly in fraud cases. This installment explains the steps victims can take to freeze a scammer’s account and the obligations banks must fulfill under the law.
The process starts with the victim reporting the fraudulent transaction to their bank. This can be done via hotline, mobile app, or in person at a branch. Under Section 8 of AFASA, banks must verify the transaction in coordination with the account holder and other institutions involved. This activates the bank’s legal duty to investigate and contain the fraud.
Temporary hold
Section 7 gives financial institutions the authority to temporarily hold funds in disputed transactions. This hold can be implemented without a court order and lasts up to 30 calendar days, unless extended by a court. A disputed transaction is one that appears unusual, lacks clear economic purpose, comes from an unknown or illegal source, or involves social engineering.
The temporary hold prevents the scammer from accessing or transferring the funds while the verification is in progress. The bank must report this action to the Bangko Sentral ng Pilipinas (BSP) and alert other relevant financial institutions. This period also allows for the case to be escalated or the funds to be recovered.
Documentation and coordination
During the freeze, the victim must submit supporting documentation to prove the fraud, such as transaction records, screenshots, communication logs with the scammer, ID documents, or a police report. Banks are required to coordinate with other institutions where the funds may have been transferred. Section 6 mandates that banks implement fraud management systems and internal controls to facilitate this process. Institutions that fail to comply may be liable for restitution.
Escalation and filing a case
If the matter is not resolved within the 30-day period or the scammer can’t be found, the victim has the right to file a formal complaint or legal case. Under Section 10, banks must retain relevant records and cooperate with law enforcement or other authorities investigating the case. This includes providing documents, transaction logs, and internal communications to support the victim’s claim.
In summary, AFASA sets clear expectations for how quickly banks must respond. Institutions should act within 24 to 48 hours of receiving a report, freeze accounts promptly, update the account holder, and work with other financial entities when the funds move across institutions. Non-compliance may result in penalties or civil liability.
AFASA rebalances the responsibilities between scam victims and financial institutions. While consumers still need to remain vigilant, the law ensures that banks are held accountable, and institutions must take swift action to protect customers and prevent further fraud.
For more of Dean Nilo Divina’s legal tidbits, please visit www.divinalaw.com. For comments and questions, please send an email to cad@divinalaw.com.
