NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
s. No. 2171
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23 MAY 10 A8 :22
RliCEiVED m
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
REGULATING THE USE OF BANK ACCOUNTS, ELECTRONIC WALLETS, AND 
OTHER FINANCIAL ACCOUNTS, PROVIDING PENALTIES THEREFOR AND 
FOR OTHER PURPOSES
EXPLANATORY NOTE
Owing to the restrained mobility of people due to the COVID-19 pandemic, 
financial consumers' behavior towards digital transactions improved and led to an 
uptake in the adoption of digital financial services. With this, however, came risks such 
as hacking incidents, phishing scams, bank account and credit card fraud, among 
others.
According to the Bangko SentraJ ng Pilipinas {BSP) in 2020 and 2021, the BSP 
Consumer Assistance Mechanism System received 42,456 complaints from financial 
consumers. In 2020 hacking and other malware attacks increased by 2,324% from 
the previous year, while phishing other social engineering schemes increased by 302% 
from the previous year. For 2021, 45.2 percent of complaints received by the BSP 
were related to internet and mobile banking. As to the declared amounts in the 
complaints, for 2021 alone it was at P540 million, but the cumulative total from 2019 
to 2020 amounted to P2 billion. Furthermore, while the majority of the cases have 
been closed, the process was long and burdensome, and for many of the complaints, 
the resolution was oftentimes not favorable to the consumer.


As it stands, the Philippines lags behinds its ASEAN neighbors in terms of 
financial inclusion, with only 56% of the adult population with a bank account in 2021. 
Risks with financial transactions could dampen financial consumers' confidence even 
more towards digital transactions, traditional banking, and the financial system in 
general.
This bill seeks to fully equip and empower government agencies and financial 
regulators to enforce measures that will address the risks and cyber threats that 
financial consumers are exposed to. Money muling and social engineering schemes 
such as phishing and vishing, are punishable offenses under this bill. While offenses 
committed by a syndicate, done on a large scale, or using a mass mailer shall be 
considered as offenses involving economic sabotage. This bill also seeks to provide 
financial consumers with efficient means to resolve their complaints, making it less 
cumbersome, more transparent, and allowing for quicker resolutions that will be more 
to their advantage.
In view of the foregoing circumstances, immediate passage of this bill is 
earnestly sought.
JINGGOY EJERCITO ESTRADA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S. No.
SENATE
2171
1; I ^tlUUL
of tl)f rVClai'P
23 MAY 10 A 8 22
RtXEiVEDEY:
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
REGULATING THE USE OF BANK ACCOUNTS, ELECTRONIC WALLETS, AND 
OTHER FINANCIAL ACCOUNTS, PROVIDING PENALTIES THEREFOR AND 
FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled:
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Section 1. Short Title. - This Act shall be known as the Bank Accounts,
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Electronic Wallets, and Other Financial Accounts Regulation Act'.
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Sec. 2. Declaration of Policy. - The State recognizes the vital role of banks,
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payment service providers, and the general banking public in promoting and
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maintaining a stable and efficient financial system. The State also acknowledges that
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with the increased use of electronic commerce and digital banking, there is a need to
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protect the public from cybercriminals and criminal syndicates who target financial
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accounts, electronic wallets (e-wallets), and other financial accounts, or lure account
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holders into perpetrating fraudulent activities. It shall therefor be the policy of the
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State to regulate the use of financial accounts, e-wallets, and other financial accounts.
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Furthermore, due to the damaging effect on the economy, the large-scale
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commission of certain crimes in this Act is hereby declared a form of economic
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sabotage and a heinous crime and as such shall be punishable to the maximum level
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allowed by law.
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Sec. 3. Definition of Terms. - As used in this Act:


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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 over a user's 
financial account, e-wallet, or other financial account;
b. Bulk e-mail or mass mailer refers to a service or software used to send 
electronic mail (e-mail) in mass or to fifty (50) or more emails;
c. Electronic Wallet or E-wallet refers to a digital value stored in a wallet as 
may be defined by the Bangko Sentral ng Pilipinas {BSP) regulations;
d. Financial Account refers to an interest or non-interest earning deposit, trust, 
investment, credit card, and other transaction account maintained with a 
bank, non-bank, or financial institution;
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 commit the 
prohibited acts under Section 4(a) of this Act;
f. Multi-Factor Authentication (MFA) refers to an authentication method that 
requires the used to provide two (2) or more verification factors, such as 
something one knows, something one has, and something one is, to gain 
access to a resource;
g. Other Financial Accounts refer to the various types of accounts used for 
financial transactions other than bank accounts and e-wallets;
h. 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;
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Sensitive Identifying Information refers to any information that can be used 
to access an individual's financial accounts such as, usernames, passwords, 
bank account details, credit card, debit card, and e-wallet information 
among other electronic credentials; and,
j. 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, and those acts 
enumerated under Section 4(b) of this Act.


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Sec. 4. Prohibited Acts. - The following acts shall constitute an offense
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punishable under this Act:
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a. Money muie. It shall be prohibited for any person to act as a money mule.
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Any person performing any of the following acts shall be considered as a
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money mule:
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1. Opening a financial, e-wallet, or other financial account and using or
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allowing the use thereof, to receive or transfer or withdraw proceeds
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known to be derived from crimes, offenses, or social engineering
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schemes;
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2. Opening a financial, e-wallet, or other financial account under a fictitious
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name or using the identity or identification documents of another to
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receive or transfer or withdraw proceeds derived from crimes, offenses,
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or social engineering schemes;
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3. Buying or renting a financial, e-wallet, or other financial account for the
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purpose of receiving or transferring or withdrawing proceeds derived
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from crimes, offenses, or social engineering schemes;
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4. Selling and lending a financial, e-wallet, or other financial account for
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the purpose of receiving or transferring or withdrawing proceeds derived
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from crimes, offenses, or social engineering schemes;
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5. Performing account takeover or using or borrowing a financial, e-wallet,
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or other financial account for the purpose of receiving or transferring or
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withdrawing proceeds derived from crimes, offenses, or social
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engineering schemes; or
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6. Recruiting, enlisting, contracting, hiring, utilizing, or inducing any person
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to perform the acts mentioned in items 1 to 5 of this Section.
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b. Sociai Engineering Schemes. Any person performing any social engineering
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scheme shall be penalized under this Act. Social engineering scheme shall
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also be deemed committed when a person performs any of the following:
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1. Makes any communication to another person by representing oneself as
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a representative of a financial institution or making any false
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representation in order to gain the trust of others and solicit sensitive
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identifying information that results in account takeover; or


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2. Uses electronic communication to induce or request any person to
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provide sensitive identifying information with the intent to defraud or
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injure any person.
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Banks and other financial institutions shall ensure that access to their clients'
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accounts is protected by the highest level of security, including MFA, security
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redundancies, and other account-holder authentication and verification processes:
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Provided, That such security levels are proportionate and commensurate with the
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nature, size, and complexity of their operations. Subject to sufficient and undeniable
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proof resulting from a thorough investigation within a reasonable time, the failure of
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these institutions to exercise proper diligence shall result in immediate restitution of
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amounts lost to the rightful owners.
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c. Economic Sabotage. Any offense defined under this section shall be
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considered as an offense involving economic sabotage when any of the
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following circumstances are present:
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1. The offense was committed by a syndicate;
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2. The offense was committed in large scale; or
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3. The offense was committed using a mass mailer.
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For this purpose, an act shall be deemed committed by a syndicate if the
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offense was carried out by a group of three (3) or more persons conspiring or
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confederating with one another, while an act shall be deemed committed in large scale
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if the offense was committed against three (3) or more persons individually or as a
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group.
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Sec. 5. Other Offenses. - The acts involving or having relation to the following
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shall constitute an offense:
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a. Any person who willfully aid or abets in the commission of any of the
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offenses enumerated in Section 4 of this Act shall be held liable; and
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b. Any person who willfully attempts to commit any of the offenses
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enumerated in Section 4 of this Act shall be held liable.
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Sec. 6. Higher Penaity for Acts Committed Under the Revised Penai Code and
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Crimes Under Speciai Laws using Money Muie and Sociai Engineering Schemes. - All
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crimes defined and penalized by Act No. 3815, otherwise known as the Revised Penal
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Code, as amended, and special laws, if committed by and through the acts as defined


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under Section 4 hereof, shall be covered by relevant provisions of this Act: Provided,
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That the penalty to be imposed shall be one (1) degree higher than that provided for
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by the Revised Penal Code, as amended, and special laws, as the case may be.
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Sec. 7. Liability under Other Laws. - A prosecution under this Act shall be
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without prejudice to any liability for violation of any provision of the Revised Penal
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Code, as amended, or special laws.
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Sec. 8. Penalties. - Any person found guilty of the punishable act under Section
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4(a) hereof shall be punished with imprisonment or prision correccionaior a fine of at
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least One hundred thousand pesos (P100,000.00), but not exceeding Two hundred
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thousand pesos (P200,000.00), or both.
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Any person found guilty of any of the punishable acts enumerated in Section
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4(b) hereof shall be punished with imprisonment of prision mayor or a fine of at least
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Two hundred thousand pesos (P200,000.00), but not exceeding Five hundred
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thousand pesos (P500,000.00), or both: Provided, however. That the maximum
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penalty shall be imposed if the target or victim of the social engineering scheme is or
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includes a senior citizen aged sixty (60) years old or above at the time the offense
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was committed or attempted.
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Any person found guilty of any of the offenses that constitutes economic
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sabotage under Section 4(c) hereof shall be punished with life imprisonment and a
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fine of not less than One million pesos (P1,000,000.00), but not more than Five million
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pesos (P5,000,000.00).
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Any person found guilty of any of the punishable acts enumerated in Section 5
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hereof shall be punished with imprisonment one (1) degree lower than that of the
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prescribed penalty for the offense or a fine of at least One hundred thousand pesos
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(P100,000.00), but not exceeding Five hundred thousand pesos (P500,000.00), or
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both.
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Sec. 9. Corporate Liability. - When any of the punishable acts herein defined
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knowingly committed on behalf of or for the benefit of a juridical person, by a natural
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person who has a leading position within based on (a) a power of representation of
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the juridical person: Provided, That the act committed falls within the scope of such
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authority; (b) an authority to take decisions on behalf of the juridical person: Provided,
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That the act committed falls within the scope of such authority; or (c) an authority to


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exercise control within the juridical person, the juridical person shall be held liable for
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a fine equivalent to at least double the fines imposable in Section 8 hereof up to a
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maximum of Ten million pesos (P10,000/000.00).
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Sec. 10. Enforcement - The provision of Chapter IV of Republic Act No. 10175,
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otherwise known as the "Cybercrime Prevention Act of 2012" shall be applicable in the
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enforcement of this Act: Provided, That in addition to the cybercrime units of the
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National Bureau of Investigation (NBI) and the Philippine National Police (PNP), the
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BSP shall have the authority to investigate cases involving violations of this Act, and
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to apply for cybercrime warrants and orders mentioned in Chapter IV of Republic Act
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No. 10175: Provided, further, That the BSP may request assistance of the NBI and the
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PNP in the investigation of cases involving violations of this Act and in the enforcement
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and implementation of cybercrime warrants and related orders.
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The BSP shall have the authority to examine and investigate individual financial
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accounts, e-wallets, or other financial accounts which are involved in the prohibited
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acts and other offenses under Sections 4 and 5 of this Act. For this purpose, the
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provisions of Republic Act No. 1405, otherwise known as the "Secrecy of Bank Deposits
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Law", Republic Act No. 6426, as amended, otherwise known as the "Foreign Currency
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Deposit Act", and Republic Act No. 10173, otherwise known as the "Data Privacy Act
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of 2012", shall not apply to other financial accounts, which are subject of the
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investigation of BSP under this provision.
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No bank or institution, or any of its directors, officers, or employees shall be
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subject to any action, claim, or demand in connection with, and shall be held free and
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harmless from liability for, any act done in compliance with an order for inquiry or
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examination of or other financial accounts from BSP: Provided, furthermore. That the
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BSP may use any or all information gathered from the above inquiry, examination, or
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investigation, in the course of its implementation of relevant provisions of Republic
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Act No. 11765 or the "Financial Products and Services Consumer Protection Act of
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2022".
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It shall be unlawful, however, for any official or employee, of a bank or
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institution or the BSP, to disclose any information concerning said other financial
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accounts to any person under such conditions other than in relation to the examination
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and investigation under this Section. It shall be unlawful for any person to use this Act


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for persecution or harassment or as an instrument to hamper competition in trade and
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commerce.
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The BSP shall have the authority to issue rules on the information sharing and
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disclosure with law enforcement and other competent authorities in connection with
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its examination and investigation of financial, e-wallets, and other financial accounts
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under this provision: Provided, finally, That any information which may be shared by
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BSP under this provision shall be used solely for the investigation and prosecution of
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cases involving the prohibited acts and other offenses defined under Section 4 and 5
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of this Act.
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Sec. 11. Jurisdiction. - The Regional Trial Court designated as cybercrime court
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shall have jurisdiction over any violation of the provisions of this Act including any
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violation committed by a Filipino national regardless of the place of commission.
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Jurisdiction shall lie if any of the elements was committed within the Philippines or
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committed with the use of any computer system wholly or partly situation in the
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country, or when by such commission any damage is caused to a natural or juridical
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person who, at the time the offense was committed, was in the Philippines.
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Sec. 12. Genera! Principles Relating to International Cooperation. - All relevant
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international instruments on international cooperation in criminal matters,
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arrangements agreed on the basis of uniform or reciprocal legislation, and domestic
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laws, to the widest extent possible for the purposes of investigations or proceedings
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concerning criminal offenses related to computer systems and data, or for the
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collection of evidence in electronic form of a criminal offense, shall be given full force
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and effect.
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Sec. 13. Implementing Rules and Regulations. - Within sixty (60) days from
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the effectivity of this Act, the BSP in coordination with the Department of Justice, NBI,
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PNP, and the Department of Information and Communications Technology shall
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promulgate the necessary rules and regulations for the effective implementation of
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the provisions of this Act.
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Sec. 14. Congressional Oversight Committee. - There is hereby created a
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Congressional Oversight Committee to monitor and oversee the implementation of the
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provisions of this Act. The Committee shall be composed of three (3) members from
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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
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Intermediaries. The Chairpersons of the Senate and the House of Representatives
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committees shall be joint Chairpersons of this Oversight Committee. The two (2) other
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members from each House are to be designated by the Senate President and the
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Speak of the House of Representatives, respectively. The minority shall have at least
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one (1) representative from each Chamber.
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Sec. 15. Separability Clause. - Should any provision herein be declared
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unconstitutional, the other provisions not affected shall remain in full force and effect.
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Sec. 16. Repealing Clause. - All laws, decrees, orders, rules and regulations or
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other issuances or parts inconsistent with the provisions of this Act are hereby
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repealed, amended or modified accordingly.
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Sec. 17. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in at least two (2) national newspapers of general
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circulation.
Approved,