Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Second Regular Session 
House Bill No.________ 
Introduced by Representative Junie E. Cua 
Lone District, Quirino 
EXPLANATORY NOTE 
The novel coronavirus pandemic accelerated the popularity of digital and “card-not-
present” transactions which led banks to extend their reach and efficiency in the delivery of 
services to the public. As the banking industry continually implements its digitalization initiatives 
and enhances its cybersecurity systems, cybercriminals however continue to inflict harm by finding 
new and different ways to deceive the banks’ consumers. These cybercriminals have determined 
that retail customers are the “weak point” that can be exploited. 
The economic hardship brought about by the pandemic has led some to resort to “easy 
money” or to look for funds obtained by dubious means or for little work, such as the buy-and-sell 
of bank accounts which phishers or cybercriminals use to avoid arrest and criminal liability. 
This is why banks and consumers must join forces in addressing phishing and other 
cybercrime incidents to hold criminals accountable. While the banking industry continues to 
innovate its security systems to stop cybercriminals’ activities, consumers have equally a crucial 
part to play by being vigilant in knowing how they can defend themselves, and avoid participation 
and falling prey to the fraudulent mechanisms set-up by cybercriminals.  
Any action undertaken to deter cybercriminals needs legislative support, given the fact that 
the Philippines, unlike places like Singapore, has no law against the use of financial accounts as 
accessories to financial crime—whether or not the accounts belong or are loaned to the fraudster. 
For the last three years, around 1,419 incidents were tied to deposit crimes and losses. The distinct 
lack of sufficient laws and penalties make it difficult to not only discourage cybercrime but also 
mete out disciplinary action. Collective action is necessary protect the financial industry and more 
importantly the banking public.    
As such, we must take careful consideration of what can and should be done to mitigate the 
rise in cybercrime incidents. All legislation impacting digital financial services must be considered 
meticulously, so as not to reverse recent gains in digitalization of financial services, lest such 
legislation give rise to adverse economic consequences. 
In view of the foregoing, the passage of this bill into law is earnestly sought. 
BAEWRA June 14, 2021 
JUNIE E. CUA 
June 14, 2021
3:21 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Second Regular Session 
House Bill No.________ 
Introduced by Representative Junie E. Cua 
Lone District, Quirino 
AN ACT 
REGULATING THE USE OF BANK ACCOUNTS AND E-WALLETS  
AND PROHIBITING THE USE THEREOF FOR UNUSUAL AND SUSPICIOUS 
FINANCIAL ACTIVITY 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:  
SECTION 1. Short Title. – This Act shall be known as the “Bank Account and E-wallet 
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Regulation Act”.  
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SECTION 2. Declaration of Policy. – The State recognizes the vital role of both banks and 
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the general banking public in promoting and maintaining a stable and efficient financial system. 
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The State also acknowledges that in the advent of electronic commerce (e-commerce) and 
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digital banking, there is a need to protect the public from cybercriminals and criminal 
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syndicates who target bank accounts and e-wallets and lure account holders to aid them in 
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perpetrating fraudulent activities. It shall be the policy of the State to undertake measures to 
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protect all persons from falling prey to the various cybercrime schemes by regulating and 
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prohibiting the use of bank accounts and electronic wallets (e-wallets) for unusual and 
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suspicious financial activities. Furthermore, due to the deleterious effect on the economy, the 
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State declares that the commission of certain crimes under this Act when done in bulk or in 
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large scale is a form of economic sabotage and a heinous crime and shall be punishable to the 
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maximum level allowed by law.  
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SECTION 3. Definition of Terms. – For purposes of this Act, the following terms are hereby 
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defined as follows:  
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(A) Account takeover refers to a form of identity theft and fraud, where a malicious third
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party successfully gains access and control to a user's bank account or e-wallet.
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(B) Bulk email/mass mailer refers to a service or software used to send electronic mail (e-
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mail) in mass. 
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(C)  Entity refers to corporations, partnerships, associations, organizations, joint ventures, 
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government agencies or instrumentalities, Government-Owned and Controlled 
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Corporations (GOCCs), or any other legal entity, whether for profit or not-for-profit. 
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(D) Money mule refers to any person who electronically receives, acquires, or transfers 
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money, funds, or proceeds derived from phishing or other cybercrime. 
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(E)  Phishing refers to a social engineering scheme to obtain or any attempt to obtain 
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sensitive identifying information by disguising as a trusted entity in an electronic 
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communication for the purpose of illegally accessing a victim’s online account. 
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(F)  Sensitive Identifying Information refers to any information that can be used to access 
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an individual’s financial accounts such as, but not limited to, usernames, passwords, 
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bank account details, credit card, debit card, and e-wallet information among other 
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electronic credentials. 
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(G) Social engineering scheme in the context of information security refers to the use of 
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deception to manipulate individuals into divulging confidential or personal information 
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that may be used for fraudulent purposes.  This includes phishing and any of its 
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variations such as but not limited to vishing, smishing and other similar forms of 
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deception. 
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(H)  Suspicious activity refers to any online transaction, regardless of amount, where any 
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of the following circumstances exists: 
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1. there is no underlying legal or trade obligation, purpose or economic justification; 
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2. the number of online transactions or amount involved is observed to deviate from 
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the profile of the client or the client’s past transactions; 
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3. the transaction is in any way related to an unlawful activity or to a social 
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engineering scheme or cybercrime that is about to be committed, is being or has 
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been committed;  
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4. taking into account all known circumstances, it may be perceived that the client’s 
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transaction is structured in order to aid the perpetrators of an unlawful activity, 
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phishing scheme or cybercrime 
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5. any transaction that is similar, analogous or identical to any of the foregoing.  
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(I) Unusual activity refers to the use of one’s bank account or e-wallet that is not in 
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accordance with the terms, conditions, and permitted purpose imposed by the bank or 
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financial entity. 
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SECTION 4. Prohibited Acts. – The following acts shall constitute an offense punishable 
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under this Act:  
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(A) Money mule. It shall be prohibited for any person who, with intent to gain for himself 
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or for another, electronically obtains, receives, acquires, or transfers money, funds, or 
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proceeds derived from a suspicious activity, phishing or other cybercrime offense. Mere 
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electronic receipt or transfer of money, funds, or proceeds which has been subject of a 
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suspicious activity, phishing scheme or other cybercrime shall be prima facie evidence 
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that the person is a money mule. 
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The following acts shall also constitute an offense:   
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(1) 
Opening a bank or e-wallet account and using or allowing the use 
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thereof, to receive or transfer proceeds derived from a suspicious 
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activity or cybercrime;  
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(2) 
Opening a bank or e-wallet account under a fictitious name or using the 
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identity or identification documents of another to receive or transfer 
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proceeds derived from a suspicious activity or cybercrime; 
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(3) 
Buying or renting a bank or e-wallet account for the purpose of receiving 
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or transferring proceeds derived from a suspicious activity or 
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cybercrime; 
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(4) 
Selling a bank or e-wallet account for the purpose of receiving or 
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transferring proceeds derived from a suspicious activity or cybercrime; 
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(5) 
Account takeover or using or borrowing a bank or e-wallet account for 
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the purpose of receiving or transferring proceeds derived from a 
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suspicious activity or cybercrime; 
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(6) 
Recruiting, enlisting, contracting, hiring or inducing any person to 
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electronically obtain, receive, acquire, or transfer money, funds, or 
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proceeds derived from a suspicious activity or cybercrime. Recruitment 
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of money mules when committed by a syndicate or in large scale shall 
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be considered as an offense involving economic sabotage.  
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Recruitment or utilization of money mules is deemed committed by a 
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syndicate if carried out by a group of three (3) or more persons 
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conspiring or confederating with one another. It is deemed committed in 
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large scale if committed against three (3) or more persons individually 
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or as a group.  
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(B) Phishing. It shall be prohibited for any person to obtain or attempt to obtain through a 
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social engineering scheme, sensitive identifying information by disguising as a trusted 
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entity in an electronic communication for the purpose of illegally accessing a victim’s 
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online account.  
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An individual or entity is guilty of phishing if, with intent to defraud or injure 
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an individual or entity, or with knowledge that one is facilitating a fraud or injury to be 
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perpetrated by anyone: 
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(1) Makes any electronic communication disguising to be a trusted entity or on 
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behalf of a trusted entity; and  
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(2) Uses electronic communication to induce, request, or solicit any person to 
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provide sensitive identifying information.  
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(C) Economic sabotage. Any offense perpetrated under this subsection using a bulk e-mail, 
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mass mailer or any service, software, or other method of delivery calculated to utilize 
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the massive reach of the internet to reach the maximum number of victims, pursuant to 
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a “phishing” or other similar fraudulent scheme, shall be punished as an act of economic 
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sabotage.” 
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SECTION 5. Other Offenses. — The acts involving or having relation to the following shall 
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also constitute an offense: 
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(a) Aiding or Abetting a Money Mule. – Any person who willfully abets or aids in the 
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commission of any of the offenses enumerated in this Act shall be held liable. 
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(b) Attempt in the commission of a crime. — Any person who willfully attempts to commit 
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any of the offenses enumerated in this Act shall be held liable. 
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SECTION 6. All crimes defined and penalized by the Revised Penal Code, as amended, and 
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special laws, if committed by, through and with the use of information and communications 
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technologies shall be covered by the relevant provisions of this Act: Provided, That the penalty 
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to be imposed shall be one (1) degree higher than that provided for by the Revised Penal Code, 
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as amended, and special laws, as the case may be. 
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SECTION 7. Liability under Other Laws. — A prosecution under this Act shall be without 
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prejudice to any liability for violation of any provision of the Revised Penal Code, as amended, 
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or special laws. 
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SECTION 8. Penalties. — Any person found guilty of the punishable act under Section 4(A) 
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shall be punished with imprisonment of prision mayor or a fine of at least Two hundred 
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thousand pesos (PhP200,000.00) but not exceeding Five hundred thousand pesos 
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(PhP500,000.00), or both.  
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Any person found guilty of any of the punishable acts enumerated in Section 4(B) shall be 
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punished with imprisonment of prision correccional or a fine of at least One hundred thousand 
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pesos (PhP100,000.00) but not exceeding Two hundred thousand pesos (PhP200,000.00), or 
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both.  
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Provided, however, That the maximum penalty shall be imposed if the target or victim/s of the 
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social engineering scheme is or includes a senior citizen aged sixty (60) years old or above at 
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the time the offense was committed or attempted. 
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Any person found guilty of any of the offenses that constitutes economic sabotage under Section 
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4(C) shall be punished with life imprisonment and a fine of not less than One million pesos 
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(P1,000,000.00) but not more than Five Million Pesos (P5,000,000.00). 
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SECTION 9. Implementing Rules and Regulations. — Within thirty (30) days from the 
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effectivity of this Act, the Bangko Sentral ng Pilipinas (BSP) Department of Justice (DOJ), 
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National Bureau of Investigation (NBI) and the Philippine National Police (PNP) shall 
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promulgate the rules and regulations to effectively implement the provisions of this Act.  
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SECTION 10. Jurisdiction. — The Regional Trial Court shall have jurisdiction over any 
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violation of the provisions of this Act including any violation committed by a Filipino national 
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regardless of the place of commission. Jurisdiction shall lie if any of the elements was 
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committed within the Philippines or committed with the use of any computer system wholly or 
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partly situated in the country, or when by such commission any damage is caused to a natural 
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or juridical person who, at the time the offense was committed, was in the Philippines. 
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SECTION 11. General Principles Relating to International Cooperation. — All relevant 
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international instruments on international cooperation in criminal matters, arrangements agreed 
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on the basis of uniform or reciprocal legislation, and domestic laws, to the widest extent 
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possible for the purposes of investigations or proceedings concerning criminal offenses related 
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to computer systems and data, or for the collection of evidence in electronic form of a criminal, 
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offense shall be given full force and effect. 
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SECTION 12. Separability Clause. If any separable provision of this Act is declared 
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unconstitutional, the remaining provisions shall continue to be in force. 
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SECTION 13. Repealing Clause. All laws, decrees, executive orders, rules and regulations or 
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parts thereof which are inconsistent with this Act are hereby repealed, amended or modified 
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accordingly. 
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SECTION 14. Effectivity. This Act shall take effect fifteen (15) days after its publication in 
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the Official Gazette or in a newspaper of general circulation. 
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