PhilippinesAnti-Financial Account Scamming Act, Protection of Access to Clients' Financial Accounts
Republic Act No. 12010 (2024), Anti-Financial Account Scamming Act, Section 6
In force.
A sector security regimes rule binding private bodies.
- Instrument type
- an act of a legislature
- Obligation class
- Security, Governance
As of .
What it requires
- This binds a bank, non-bank, other financial institution, or payments and financial services provider under the jurisdiction of the Bangko Sentral ng Pilipinas (reached by declaring that you provide financial services) (sections 3(f) and 6).
- Ensure that access to your clients' Financial Accounts is protected by adequate risk management systems and controls such as multi-factor authentication, fraud management systems, and other Account Owner enrollment and verification processes (section 6).
- Make those systems and controls proportionate and commensurate to the nature, size and complexity of your operations (section 6).
These lines are LexLint's reading of the law's text, as of .
Who enforces it
Enforcement body
The Bangko Sentral ng Pilipinas, which determines whether an Institution is compliant with the risk management requirements of section 6.
Settledness
- As of
- Open questions
- Which risk management systems and controls will the Bangko Sentral ng Pilipinas treat as adequate under section 6, since the Act names multi-factor authentication and fraud management systems only as examples?
- On what day did the Act take effect, given that section 26 ties its effect to the date of publication?
What this law does
Section 6 of Republic Act No. 12010 requires Institutions to ensure that access to their clients' Financial Accounts is protected by adequate risk management systems and controls such as multi-factor authentication, fraud management systems, and other Account Owner enrollment and verification processes. Section 6 requires those systems and controls to be proportionate and commensurate to the nature, size and complexity of the Institution's operations.
Section 6 relieves an Institution that the Bangko Sentral ng Pilipinas determines to be compliant with the risk management requirements of liability for loss or damage arising from the offenses in sections 4 and 5. Section 6 makes an Institution liable for restitution of funds to the Account Owner where it failed to employ adequate risk management systems and controls, or failed to exercise the highest degree of diligence in preventing loss or damage from the offenses in sections 4 and 5.
Section 3(f) defines Institutions as banks, non-banks, other financial institutions, and payments and financial services providers under the jurisdiction of the Bangko Sentral ng Pilipinas. Section 26 provides that the Act takes effect after fifteen days following its publication in the Official Gazette or in a national newspaper of general circulation. The President approved the Act on .
When LexLint raises it
When your app profile says your app provides financial services.