EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Third Regular Session 
)
SENATE 
S. NO. 2380
F LED
IKfDtX
GlCuS
Introduced by Senator Grace Poe
AN ACT
REGULATING THE USE OF BANK ACCOUNTS, E-WALLETS, AND OTHER 
FINANCIAL ACCOUNTS, PROVIDING PENALTIES THEREFOR AND FOR OTHER 
PURPOSES
Explanatory Note
The COVID-19 pandemic has ushered the rapid growth of e-commerce and digital 
transactions in the country as many Filipinos—due to the restrictions on travel and face- 
to-face interaction—are forced to conduct their transactions online. For instance, 
electronic money (e-money) transactions increased by almost 61% from Phpl.49 trillion 
in 2019 to P2.39 trillion in 2020.1 EGov Pay facility, where citizens can settle their 
payments to government institutions and agencies, also saw a surge both in volume 
(1775%) and value (6603%).2 Additionally, almost 4 million new basic deposit accounts 
were opened via digital platforms, which enable users to store funds and utilize electronic 
payments.3
As online payment and transactions in the country continue to rise, Filipinos have become 
morevuinerable to crimes related to online financial transactions. The Philippine National 
Police Anti-Cybercrime Group reported that online scams from March to September 2020 
have increased by 37% compared to the same period in 2019.4 Red flag reports from 
electronic money issuers (e.g. Paymaya) also soared by 688%, with the cited top reason 
being unauthorized account access through skimming and phishing.5 From March to May 
2020, the BSP reported that 98.4% of all criminal incidents reported were classified as
'The Philippine star. (09 June2021). "E-MoneyTransactions Jump 61% to P2.39 Trillion in 2020''.The Philippine Star. Accessed from: 
https://www.philstar.eom/business/2021/06/09/2104024/e-money-transactions-jump-61-p239-trillion-2020
2 
Noble, L.W.T. (30 April 2021). "Digital Payments Continue to Surge". Business World. Accessed from: 
https://www.bworldonline.com/digital-payments-continue-to-surge/
3 Cuaresma, Bianca. (26 October 2020). "BSP: 4-M New Basic Deposit Accounts Opened in Pandemic". BusinessMirror. Accessed frem: 
https://businessmirror.com.ph/2020/10/26/bsp-4-m-new-basic-deposit-accounts-opened-in-pandemic/
^ Balinbin, Arjay L. (08 March 2021). "Cybercrime to Increase Further as Transactions Shift Online". Business World. Accessed from: 
https://www.bworldonline.com/cybercrime-to-increase-further-as-transactions-shift-online/
5 Lucas, Daxim L. (02 August 2021). "Bankers' Group Warns Public vs Rising Cyber Crimes, Fraud". Inquirer.net Accessed from: 
https://business.inquirer.net/328294/bankers-group-warns-public-vs-rising-cyber-crimes-fraud


cyber or online in nature, amounting to a loss of Php60.6 Million.6 BSP Governor Benjamin 
Dtokno reported that of the 20,000 complaints received by the Consumer Protection on 
Market Conduct Office last year, around 13% refer to fraudulent, unauthorized 
transactions and financial products of BSP-supervised institutions such as deposits, credit 
card, e-money services and remittance.7
Among the cybercrimes that surged during the pandemic, phishing became the most used 
cyberattack mechanism. In a survey conducted byTransUnion, a global information and 
insights company, during the second quarter of 2021 in the Philippines, 6% of the 
respondents reported to have been victimized by fraud schemes online, while 42% said 
that they have been targeted by fraud schemes.8 Of the fraud schemes cited by the 
respondents, phishing makes up 40%.9 Recently, several clients of a certain Philippine 
bank reported to have lost up to Php5.7 million from phishing and unauthorized 
transactions performed on their accounts.10
The Bangko Sentral ng Pilipinas (BSP) has since released a Memorandum which mandates 
banks and other BSP-supervised financial institutions to adopt and implement effective 
measures for the protection of financial consumers, including the proactive promotion of 
digitai literacy and cybersecurity awareness, as well as institutionalizing a responsive 
complaint and redress mechanism for consumers.11 However, many of the victims 
expressed the clear inadequacy of these measures.12
On the same note, the Anti-Money Laundering Council (AMLC) reported a rise in 
suspicious transaction reports (STRs) during the first 8 months of 2020, which climbed 
by 57%.13 Nearly half (49%) of the STR filings were related to phishing and skimming, 
with an estimated value of Php2.7 billion, while transactions related to money mules or 
pass-through accounts made up 9% of the STRs, with an estimated value of Php406.9 
million.14 These money mules or pass-through accounts are often utilized to hide the 
proceeds derived from illegal transactions and activities.
6Cuaresma, Bianca. (05 November 2020). "Banks LostP60.6 Million to Cybercrime in Initial Quarantines -BSP Report". BusinessMirror. 
Accessed from: https://businessmirror.com.ph/2020/ll/05/banks-lost-p60-6-million-to-cybercrime-in-initial-quarantines-bsp-report/ 
7 Noble, L.W.T. (05 March 2021). "Complaints on Financial Transactions Reach 20,000". Business World. Accessed from: 
https://www.bworidonline.eom/complaints-on-financial-transactions-reach-20000/
8TransUnion.(2021). "COVID-19's Current and Future Impact on Household Budgets, Spending and Debt". Consumer Pulse Study. 
Accessed from: https://content.transunion.eom/v/consumer-pulse-ph-q2-2021
9 Ibid.
10 Gonzales, Gelo. (27 July 2021). "Security Bank Users Claim Phishing Losses Totaling More than P5.7M". Rappler.com. Accessed 
from: https://www.rappler.com/technology/security-bank-account-holders-daim-phishing-losses
11 Bangko Sentral ng Pilipinas, Memorandum No. M-2020-053 Series of 2020, 19 June 2020.
12 Gonzales, Gelo. (28 July 2021). "Phishing Victims Turn to Class-Acton Lawsuits Against Banks". Rappler.com. Accessed from: 
https://www.rappler.com/technology/phishing-victms-class-acton-lawsuits-banks
13 Noble, Luz Wendy T. (20 November 2020). "Suspicious Transactons Contnue to Rise". Business World. Accessed from: 
https ://www.bworldonline.com/suspicious-transactons<ontnue-to-rise/
M Noble, Luz Wendy T. (20 November 2020). "Suspicious Transactons Contnue to Rise". Business World. Accessed from: 
https://www.bworldonline.com/suspicious-b-ansactons-contnue-to-rise/


It is under these circumstances that the present bill must be passed. By strictly penalizing 
money mules and social engineering schemes, this measure seeks to ensure that the 
hard-earned money of the public is kept safe, and that public trust and confidence in our 
current financial system are maintained as it continues to innovate and traverse through 
cyberspace.
In view of the foregoing, the early passage of this bill is urgently sought.
^RACE POE


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OFTHE PHILIPPINES )
Third Regular Session 
)
SENATE 
S. NO. 2380
BILLS
Introduced by Senator Grace Poe
AN ACT
REGULATING THE USE OF BANK ACCOUNTS, E-WALLETS, AND OTHER 
FINANCIAL ACCOUNTS, PROVIDING PENALTIES THEREFOR AND FOR 
OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Tide. -This Act shali be known as the n Bank Account, E-wailet,
2 
and Other Financial Accounts Regulation Act'.
3 
Sec. 2. Declaration of Policy. - The State recognizes the vital role of banks,
4 
payment service providers, and the general banking public in promoting and
5 
maintaining a stable and efficient financial system. The State also acknowledges that
6 
in the advent of eiectronic commerce (e-commerce) and digital banking, there is a
7 
need to protect the public from cybercriminals and criminal syndicates who target
8 
bank accounts and e-wallets. It shall be the policy of the State to undertake measures
9 
to protect all persons from falling prey to the various cybercrime schemes by
10 
regulating and prohibiting the use of bank accounts and electronic wallets (e-wallets)
11 
for unusual and suspicious financial activities. Furthermore, due to the deleterious
12 
effect on the economy, the State declares that the commission of certain crimes under
13 
this Act when done in bulk or in large scale is a form of economic sabotage and a
14 
heinous crime and shall be punishable to the maximum level allowed by law.
15 
Sec. 3. Definition of Terms. - For purposes of this Act, the following terms are
16 
hereby defined as follows:
17 
(a) Account Takeover refers to a form of identity theft and fraud, where a
18 
malicious third party successfully gains access and control of a user's financial
19 
accounts.


1 
(b) 
Bulk Emailing/Mass Mailing refers to the act of sending an electronic mail
2 
(email) in mass, with at least fifty (50) or more recipients.
3 
(c) 
Entity refers to natural or juridical persons, including corporations,
4 
partnerships, associations, organizations, joint ventures, government agencies or
5 
instrumentalities, Government-Owned and Controlled Corporations (GOCCs), or any
6 
other legal entity, whether for profit or not-for-profit.
7 
(d) 
Electronic Wallet (e-wallet) refers to a software or application which
8 
allows the user to store money for any future online transaction.
9 
(e) 
Money Mule refers to any person who electronically receives, acquires,
10 
and transfers or withdraws money, funds, or proceeds derived from suspicious
11 
activities, social engineering schemesorother crimes/offenses committed through the
12 
use of information and communications technology, on behalf of others, in exchange
13 
for commission or fee, and those who committhe acts under Section 4(a) of this Act.
14 
(f) 
Other Financial Accounts refer to new or emerging forms of financial
15 
accounts other than bank accounts and e-wallets.
16 
(g) 
Phishing refers to a social engineering scheme of posing as a legitimate
1
17 
or trusted entity, or as a representative of a legitimate or trusted entity mainly through
18 
electronic communication in order to obtain sensitive identifying information of
19 
another by illegally accessing an individual's online account.
20 
(h) 
Sensitive Identifying Information refers to any information that can be
21 
used to access an individual's financial accounts such as, but not limited to,
22 
usernames, passwords, bank account details, credit card, debit card, and e-wallet
23 
information, among other electronic credentials.
24 
(i) 
Social Engineering Scheme, in the context of information security, refers
25 
to the use of deception to manipulate individuals into divulging sensitive identifying
26 
information that may be used to gain access to an individual's financial accounts,
27 
regardless of whether or not it will result in monetary loss to the account holder. This
28 
includes phishing and any of its variations such as but not limited to vishing, smishing,
29 
as well as other similar forms of deception.
30 
(j) 
Suspicious Activity refers to any online transaction, regardless of
31 
amount, where any of the following circumstances exists:


1 
1. 
There is no underlying legal or trade obligation, purpose or
2 
economic justification;
3 
2. 
The number of online transactions, amount involved, or any
4 
circumstance relating to the activity is observed to be unusual or deviates from
5 
the profile of the client or the client's past transactions;
6 
3. 
The transaction is in any way related to an unlawful activity or to
7 
a social engineering scheme or cybercrime that is about to be, is being or has
8 
been committed;
9 
4. 
Taking into account all known circumstances, it may be perceived
10 
that the client's transaction is structured in order to aid the perpetrators of an
11 
unlawful activity, social engineering scheme or cybercrime; and
12 
5. 
Any transaction that is similar, analogous or identical to any of
13 
the foregoing.
14 
Sec. 4. Prohibited Acts. - The following acts shall constitute an offense
15 
punishable under this Act:
16 
(a) Money muie. It shall be prohibited for any person to act as a money
17 
mule as defined under this law.
18 
The following acts shall also constitute 
as an offense:
19 
1. 
Opening a bank or e-wallet account and using or allowing the use
20 
thereof, to receive and transfer or withdraw proceeds derived from a suspicious
21 
activity or cybercrime;
22 
2. 
Opening a bank or e-wallet account under a fictitious name or
23 
using the identity or identification documents of another to receive and transfer
24 
or withdraw proceeds derived from a suspicious activity or cybercrime;
25 
3. 
Buying or renting a bank or e-wallet account for the purpose of
26 
receiving and transferring or withdrawing proceeds derived from a suspicious
27 
activity or cybercrime;
28 
4. 
Selling a bank or e-wallet account for the purpose of receiving
29 
and transferring or withdrawing proceeds derived from a suspicious activity or
30 
cybercrime;
3 ■


1 
5. Account takeover or using or borrowing a bank or e-wallet
2 
account for the purpose of receiving and transferring or withdrawing proceeds
3 
derived from a suspicious activity or cybercrime;
4 
6. 
Recruiting, enlisting, contracting, hiring or inducing any 
person to
5 
electronically obtain, receive, acquire, and transfer or withdraw money, funds,
6 
or proceeds derived from a suspicious activity or cybercrime. Recruitment of
7 
money mules when committed by a syndicate or in large scale shall be
8 
considered as an offense involving economic sabotage.
9 
(b) Social Engineering Schemes. Any person performing any social
10 
engineering schemes as defined under Section 3, including phishing and any variations
11 
thereof, shall be penalized under this Act.
12 
(c) Economic Sabotage. Any offense defined under this Section shall be
13 
considered as an offense involving economic sabotage when any of the following
14 
circumstances is present:
15 
1. 
The offense was committed by a syndicate;
16 
2. 
The offense was committed in large scale; or
17 
3. 
The offense was committed by way of bulk email or mass mail.
18 
For this purpose, an act shall be deemed committed by a syndicate if the
19 
offense was carried out by a group of three (3) or more persons conspiring or
20 
confederating with one another. Meanwhile, an act shall be deemed committed in
21 
large scale if the offense was committed against three (3) or more persons individually
22 
or as a group.
23 
Sec. 5. Other Offenses.- Ihe. acts involving or having relation to the following
24 
shall also constitute an offense:
25 
(a) Aiding or Abetting a Money Mule. - Any person who willfully abets or
26 
aids in the commission of any of the offenses enumerated in this Act shall be held
27 
liable.
28 
(b) Attempt in the commission of a crime. — Any person who willfully
29 
attempts to commitany of the offenses enumerated in this Act shall be held liable.
30 
Sec. 6. Liability Under Other Laws. - A prosecution under this Act shall be
31 
without prejudice to any liability for violation of any provision of the Revised Penal
32 
Code, as amended, or special laws.


1 
Sec. 7. Penalties. - Any person found guilty of the punishable act under Section
2 
4(A) shall be punished with imprisonment of prision correcciona!ox a fine of at least
3 
One hundred thousand pesos (PhP100,000.00) but not exceeding Two hundred
4 
thousand pesos (PhP200,000.00), or both.
5 
Any person found guilty of any of the punishable acts enumerated in Section
6 
4(B) shall be punished with imprisonment of prision mayorox a fine of at least Two
7 
hundred thousand pesos (PhP200,000.00) but not exceeding Five hundred thousand
8 
pesos (PhP500,000.00), or both.
9 
Provided, however. That the maximum penalty shall be imposed if the target
10 , or victim/s of the social engineering scheme is or includes a senior citizen aged sixty
11 
(60) years old or above at the time the offense was committed or attempted.
12 
Any person found guilty of any of the offenses that constitutes economic
13 
sabotage under Section 4(C) shall be punished with life imprisonment and a fine of
14 
not less than One million pesos (P1,000,000.00) but not more than Five Million Pesos
15 
(P5,000,000.00).
16 
Sec. 8. Jurisdiction. -The Regional Trial Court, designated as cybercrime court,
17 
shall have jurisdiction over any violation of the provisions of this Act, including any
18 
violation committed by a Filipino national regardless of the place of commissbn.
19 
Jurisdiction shall lie if any of the elements was committed within the Philippines or
20 
committed with the use of any computer system wholly or partly situated in the
21 
country, or when by such commission any damage is caused to a natural or juridical
22 
person who, at the time the offense was committed, was in the Philippines.
23 
Sec. 9. General Principles Relating to International Cooperation. - All relevant
24 
international instruments on international cooperation in criminal matters,
25 
arrangements agreed on the basis of uniform or reciprocal legislation, and domestic
26 
laws, to the widest extent possible for the purposes of investigations or proceedings
27 
concerning criminal offenses related to computer systems and data, or for the
28 
collection of evidence in electronic form of a criminal offense, shall be given full force
29 
and effect.
30 
Sec. 10. Enforcement. - The NBI and PNP shall be responsible for the efficient
31 
and effective law enforcement of the provisions of this Act. The cybercrime unit or


1 
center established under Section 10 of Republic Act No. 10175 shall exclusively handle
2 
all cases involving violations of this Act.
3 
Sec. 11. Response to Consumers. - Banks, Non-Bank Financial Institutions, and
4 
other pertinent Bank and Non-Bank Institutions shall immediately and effectively
5 
respond to all complaints related to social engineering attacks other cybercrimes
6 
perpetrated upon consumers. They shall comprehensively investigate each case,
7 
provide continuous updates to consumers, coordinate with the proper authorities, and
8 
exhaust all means to ensure that victims are able to recover their monetary loss, if
9 
any.
10 
The said institutions shall likewise institute measures to strengthen their online
11 
platforms, payment systems, and data security, among others.
12 
Sec. 12. Implementing Rules and Regulations. — Within sixty (60) days from
13 
the effectivity of this Act, the Bangko Sentral ng Pilipinas (BSP), Department of Justice
14 
(DOJ), Department of Information and Communications Technology (DICT), National
15 
Bureau of Investigation (NBI) and the Philippine National Police (PNP) shall
16 
promulgate the rules and regulations to effectively implement the provisions of this
17 
Act.
18 
These agencies shall formulate an "Anti-Scam/Financial Fraud Roadmap" which
19 
shall include detailed measures on, among others, education and information
20 
dissemination on financial scams and its prevention; enhanced detection, reporting,
21 
and prosecution of persons behind money mules, social engineering schemes, and
22 
other financial cybercrimes; and the training of responsible officers and personnel to
23 
ensure the effective enforcement and prosecution of cases under this Act.
24 
Sec. 13. Appropriation. 
- The amount necessary for the effective
25 
implementation of this Act shall be incorporated in the General Appropriations Act.
26 
Sec. 14. Separability Clause. - If for any reason, any provision of this Act is
27 
declared invalid or unconstitutional, the remaining parts or provisions not affected
28 
shall remain in full force and effect.
29 
Sec. 15. Repealing Clause. - All laws, decrees, executive orders, rules and
30 
regulations or parts thereof which are contrary or inconsistent with the provisions of
31 
this Act are hereby repealed, amended or modified accordingly.


1 
Sec. 16. Effectivity. - This Act shall take effect fifteen (15) days after its
2 
publication in the Official Gazette or in a newspaperof general circulation.
Approved,