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Reference Number ACG-CSB 070825399

The following information was obtained from different cyber security sources for notification to all parties concerned pursuant to the mandate of the Philippine National Police Anti-Cybercrime Group (PNP ACG) and classified as “Restricted” pursuant to the PNP Regulation 200-012 on Document Security and Impact Rating as high based on PNP Information Communication Technology (ICT) Security Manual s.2010-01 p. 22 and p.129.

SUMMARY

What would happen if someone lent their bank account to a friend for just one transaction, thinking it was harmless? Under Republic Act No. 12010, or the Anti-Financial Account Scamming Act (AFASA), such an action is considered a cybercrime. This law specifically addresses the issue of money muling, where individuals, knowingly or unknowingly, facilitate the transfer of illicit funds through their financial accounts.

AFASA outlines several actions that fall under money muling and are considered criminal offenses. These include using, borrowing, or allowing the use of a financial account to handle proceeds gained through crimes or fraudulent schemes. It also covers opening an account under a fictitious name or using someone else’s identity or identification documents. Other punishable acts involve buying, renting, selling, or lending financial accounts, as well as recruiting or convincing others to carry out any of these actions. These provisions aim to prevent the misuse of financial accounts in moving and disguising illegally obtained funds.

Money muling is punishable because it enables cybercriminals to move, hide, and spend stolen or illegally acquired money without being easily traced. Even if the person acting as a mule is not directly involved in the original scam, their participation helps criminals succeed by giving them access to clean, legitimate financial channels. Furthermore, money muling damages trust in the banking system and causes harm to victims whose money has been stolen.

Individuals found guilty of money muling under AFASA face serious penalties, including imprisonment ranging from six to eight years and fines. In addition to these penalties, the involved financial account may be closed and its contents forfeited. If the offense is committed under aggravating circumstances such as involving multiple victims, using stolen identities, or being part of an organized group, this may be classified as economic sabotage. This elevated classification carries much harsher consequences, including life imprisonment and fines.

RECOMMENDATION

            Here are key pieces of advice to help individuals avoid unknowingly committing cybercrime under AFASA:

  • Never share a financial account with another person, even if it seems harmless or the person is a friend or relative. Lending, selling, or renting a financial account is illegal under AFASA;
  • Do not open bank accounts for others or allow others to use identification documents to open accounts. Using false identities or impersonating someone else is a criminal offense; and
  • Immediately report lost IDs or compromised accounts to the bank and proper authorities to prevent illegal use in scams or fraudulent account openings.

For additional information, please refer to the following websites:

  • https://ndvlaw.com/republic-act-no-12010-the-anti-financial-account-scamming-act-afasa-explained/
  • https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/97690

POINT OF CONTACT

Please contact PCOL JERRY V EMPIZO, Chief, Cyber Security Unit, Cyber Security Unit, thru e-mail address csradacgroup@gmail.com or contact us by telephone number (632) 723-0401 local 7488 for any inquiries related to this CYBER SECURITY BULLETIN.

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