BAP develops central system to fight financial scams

The Bankers Association of the Philippines (BAP) is developing a central system to combat financial scams, in compliance with the Anti-Financial Account Scamming Act (AFASA).

This new system will enable banks to coordinate in real time and immediately block suspicious transactions upon receiving a report from a client.

The Bangko Sentral ng Pilipinas (BSP) has given banks one year to implement this "coordinated verification protocol."

Utilizing big data and artificial intelligence, the system aims for swift and real-time processing of scam reports and fund blocking.

A centralized database of fraudulent accounts will be established to help financial institutions flag and block suspicious transfers more effectively.

The AFASA also includes an exemption from bank secrecy laws, allowing authorities to access and share information on suspicious accounts across institutions.