Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Cybercrime has risen with the increase in the big shift in the way we live our lives and 
the use of the Internet. Unsurprisingly, criminals have taken advantage of the 
digitalization of banking, payment, and related systems. COVID-19 has presented 
several new opportunities for cybercriminal exploitation, including remote work, virtual 
crime, and persistent threats. 
Banks have increased their efforts in addressing cybercrimes, and consumers are 
increasingly educated, vigilant and cautious with continuous use. The fact remains that 
the deterrence of cybercrimes needs supporting laws. At present, the Philippines does 
not have any law against the use of financial accounts as an accessory to a financial 
crime. No punishment can deter these criminal actions. 
This proposed measure enumerates and defines punishable offenses such as money 
mules and phishing. Furthermore, due to the deleterious effect on the economy, the 
State declares that the commission of certain crimes under this proposed bill when 
done in bulk or on a large scale is a form of economic sabotage and a heinous crime 
and shall be punishable to the maximum level allowed by law. The recent gains in the 
digitalization of financial services should not result in adverse consequences. 
In view of the foregoing, the passage of this bill into law is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 
July 14, 2022
5:03 pm
2013


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT 
REGULATING THE USE OF BANK ACCOUNTS, ELECTRONIC WALLETS, 
AND OTHER FINANCIAL ACCOUNTS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Financial Accounts 
Regulation Act”.   
SEC. 2. Declaration of Policy. – The State recognizes the vital role of banks, other 
payment service providers, and the general banking public in promoting and 
maintaining a stable and efficient financial system. The State also acknowledges that 
with the increased use of electronic commerce and digital banking, there is a need to 
protect the public from cybercriminals and criminal syndicates who target bank 
accounts and e-wallets or lure account holders into perpetrating fraudulent activities. 
It shall therefore be the policy of the State to regulate the use of bank accounts and e-
wallets. Further, due to the deleterious effect on the economy, the large-scale 
commission of certain crimes in this Act is hereby declared a form of economic 
sabotage and a heinous crime and shall be punishable to the maximum level allowed 
by law.  
SEC. 3. Definition of Terms. – As used in this Act:  
2013


 
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a) Account takeover refers to a form of identity theft and fraud, where a 
malicious third party successfully gains access and control to a user's bank account 
or e-wallet;  
b) Bank Account refers to an interest or non-interest bearing deposit, trust, 
investment and other transaction account maintained with a bank or a financial 
institution;  
c) Bulk email or mass mailer refers to a service or software used to send 
electronic mail in mass or to fifty (50) or more emails;  
d) Electronic Wallet or E-wallet refers to a digital value stored in either a 
software or application which the users can use for financial transactions such as 
payments, funds transfers, top-ups or cash in and/or withdrawals, among others. 
Example of e-wallets are e-money or virtual asset accounts stored in mobile or web-
based apps;  
e) Money mule refers to any person who obtains, receives, acquires, or 
transfers or withdraws money, funds, or proceeds derived from crimes, offenses, or 
social engineering schemes, and those who committed the prohibited acts under 
Section 4 (a) of this Act;  
f) Other Financial Accounts refer to new or emerging forms of financial 
accounts other than bank accounts and e-wallets;  
g) Persons refer to natural or juridical persons, including corporations, 
partnerships, associations, organizations, joint ventures, government agencies or 
instrumentalities, government-owned and controlled corporations (GOCCs), or any 
other legal entity, whether for profit or not-for-profit;  
h) Sensitive Identifying Information refers to any information that can be 
used to access an individual’s financial accounts such as, but not limited to, 
usernames, passwords, bank account details, credit card, debit card, and e-wallet 
information among other electronic credentials; and   
i) Social engineering scheme refers to the use of deception or fraudulent 
means by a person to obtain confidential or personal information, including sensitive 
identifying information, of another person.  
 
SEC. 4. Prohibited Acts. – The following acts shall constitute an offense punishable 
under this Act: 


 
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a) Money mule. It shall be prohibited for any person to act as a money mule. The 
following acts shall constitute an offense:    
1. Opening a bank, e-wallet or other financial account and using or allowing 
the use thereof, to receive or transfer or withdraw proceeds derived from 
crimes, offenses, or social engineering schemes;   
2. Opening a bank, e-wallet account or other financial account under a 
fictitious name or using the identity or identification documents of another 
to receive or transfer or withdraw proceeds derived from crimes, 
offenses, or social engineering;  
3. Buying or renting a bank, e-wallet or other financial account for the 
purpose of receiving or transferring or withdrawing proceeds derived 
from crimes, offenses, or social engineering;  
4. Selling a bank, e-wallet or other financial account for the purpose of 
receiving or transferring or withdrawing proceeds derived from crimes, 
offenses, or social engineering;  
5. Account takeover or using or borrowing a bank or e-wallet account for 
the purpose of receiving or transferring or withdrawing proceeds derived 
from crimes, offenses, or social engineering; and  
6. Recruiting, enlisting, contracting, hiring, utilizing or inducing any person 
to act as a money mule.  
 
b) Social engineering schemes. Any person performing any social engineering 
schemes shall be penalized under this Act. 
Social engineering scheme shall be deemed committed when a person 
performs any of the following: 
1. Makes any communication to another person by representing one’s self 
as a representative of a financial institution in order to gain the trust of 
others; and  
2. Uses electronic communication to induce or request any person to 
provide sensitive identifying information with the intent to defraud or 
injure any person.  
 


 
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 c) Economic sabotage. Any offense defined under this Section shall be 
considered as an offense involving economic sabotage when any of the 
following circumstances are present:  
1. The offense was committed by a syndicate;  
2. The offense was committed in large scale; or  
3. The offense was committed using a mass mailer.  
  
For this purpose, an act shall be deemed committed by a syndicate if the offense 
was carried out by a group of three (3) or more persons conspiring or confederating 
with one another, while an act shall be deemed committed in large scale if the offense 
was committed against three (3) or more persons individually or as a group.  
 
SEC. 5. Other Offenses. — The acts involving or having relation to the following shall 
also constitute an offense:  
(a) Any person who willfully abets or aids in the commission of any of the offenses 
enumerated in Section 4 of this Act shall be held liable; and 
(b) Any person who willfully attempts to commit any of the offenses enumerated 
in Section 4 of this Act shall be held liable.  
 
SEC. 6. Higher Penalty for Acts Committed Under the Revised Penal Code and 
Crimes Under Special Laws Using Money Mule and Social Engineering   
Schemes. — All crimes defined and penalized by Act No. 3815, otherwise known as 
the Revised Penal Code, as amended, and special laws, if committed by and through 
the acts as defined under Section 4 hereof, shall be covered by the relevant provisions 
of this Act: Provided, That the penalty to be imposed shall be one (1) degree higher 
than that provided for by the Revised Penal Code, as amended, and special laws, as 
the case may be.   
 
SEC. 7. Liability Under Other Laws. — A prosecution under this Act shall be without 
prejudice to any liability for violation of any provision of the Revised Penal Code, as 
amended, or special laws.  
 
SEC. 8. Penalties. — Any person found guilty of the punishable act under Section 
4(a) hereof shall be punished with imprisonment of prision correccional or a fine of at 


 
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least One hundred thousand pesos (PhP100,000.00) but not exceeding Two hundred 
thousand pesos (PhP200,000.00) or both.   
Any person found guilty of any of the punishable acts enumerated in Section 4(b) 
hereof shall be punished with imprisonment of prision mayor or a fine of at least  Two 
hundred thousand pesos (PhP200,000.00) but not exceeding Five hundred thousand 
pesos (PhP500,000.00) or both: Provided, however, That the maximum penalty shall 
be imposed if the target or victim of the social engineering scheme is or includes a 
senior citizen aged sixty (60) years old or above at the time the offense was committed 
or attempted.  
Any person found guilty of any of the offenses that constitute economic sabotage 
under Section 4(c) hereof shall be punished with life imprisonment and a fine of not 
less than One million pesos (P1,000,000.00) but not more than Five Million Pesos 
(P5,000,000.00).  
Any person found guilty of any of the punishable acts enumerated in Section 5 
hereof shall be punished with imprisonment one (1) degree lower than that of the 
prescribed penalty for the offense or a fine of at least One hundred thousand pesos 
(PhP100,000.00) but not exceeding Five hundred thousand pesos (PhP500,000.00) 
or both.  
 
SEC. 9. Corporate Liability. — When any of the punishable acts herein defined 
knowingly committed on behalf of or for the benefit of a juridical person, by a natural 
person who has a leading position within based on a power of representation of the 
juridical person: Provided, That the act committed falls within the scope of such 
authority; (b) an authority to make decisions on behalf of the juridical person: Provided, 
That the act committed falls within the scope of such authority; or (c) an authority to 
exercise control within the juridical person, the juridical person shall be held liable for 
a fine equivalent to at least double the fines imposable in Section 8 hereof up to a 
maximum of Ten million pesos  (PhP10,000,000).   
 
SEC. 10. Enforcement. — The provision of Chapter IV of Republic Act No. 10175,   
otherwise known as the “Cybercrime Prevention Act of 2012” shall be applicable in the 
enforcement of this Act: Provided, That the Bangko Sentral ng Pilipinas (BSP) shall 
have the authority to investigate cases involving violations of this Act,  and to apply for 
cybercrime warrants and orders mentioned in Chapter IV of Republic Act No. 10175: 


 
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Provided further, That the BSP may request assistance of the cybercrime units of the 
National Bureau of Investigation (NBI) and the Philippine National Police (PNP) in the 
investigation of cases involving violations of this Act and in the enforcement and 
implementation of cybercrime warrants and related orders.  
 
SEC. 11. Jurisdiction. — The Regional Trial Court designated as cybercrime court 
shall have jurisdiction over any violation of the provisions of this Act including any 
violation committed by a Filipino national regardless of the place of commission. 
Jurisdiction shall lie if any of the elements was committed within the Philippines or 
committed with the use of any computer system wholly or partly situated in the country, 
or when by such commission any damage is caused to a natural or juridical person 
who, at the time the offense was committed, was in the  Philippines.  
 
SEC. 12. General Principles Relating to International Cooperation. — All relevant 
international instruments on international cooperation in criminal matters, 
arrangements agreed on the basis of uniform or reciprocal legislation, and domestic 
laws, to the widest extent possible for the purposes of investigations or proceedings 
concerning criminal offenses related to computer systems and data, or for the 
collection of evidence in electronic form of a criminal offense, shall be given full force 
and effect.  
 
SEC. 13. Implementing Rules and Regulations (IRR). — Within sixty (60) days from 
the effectivity of this Act, the BSP, Department of Justice (DOJ), NBI, PNP, and the 
Department of Information and Communications Technology shall promulgate the 
rules and regulations to effectively implement the provisions of this Act.  
A cooperative mechanism shall be established among the concerned 
government agencies, banks, financial and other covered institutions, private and 
corporate sectors, and other concerned stakeholder groups to ensure the effective 
prosecution of cases and enforcement of this act.  
 
SEC. 14. Congressional Oversight Committee. — There is hereby created a 
Congressional Oversight Committee to monitor and oversee the implementation of the 
provisions of this Act. The Committee shall be composed of three (3) members from 
the Senate Committee on Banks, Financial Institutions and Currencies and three (3) 


 
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members from the House of Representatives Committee on Banks and Financial 
Intermediaries. The Chairpersons of both the Senate and the House of 
Representatives committees shall be joint Chairpersons of this Committee. The two 
(2) other members from each House are to be designated by the Senate President 
and the Speaker of the House of Representatives, respectively. The minority shall 
have at least one (1) representative from each Chamber.  
 
SEC. 15. Separability Clause. If any section or provision of this Act shall be declared 
unconstitutional or invalid, the other sections or the provisions not affected thereby 
shall remain in full force and effect.  
  
SEC. 16. Repealing Clause. All laws, decrees, executive orders, rules and 
regulations or parts thereof which are inconsistent with this Act are hereby repealed, 
amended or modified accordingly.  
 
SEC. 17. Effectivity. This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation. 
 
Approved,