NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
Senate
of ti)f fiin iTtar^
23 JAN 12 P3 :31
RECEIVED BV:
SENATE
S.B. No. 1663
Introduced by SENATOR IMEE R. MARCOS
AN ACT
PENALIZING FINTECH CRIME, PROVIDING PENALTIES 
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines is host to approximately 79 million mobile phone users as of 
August 2022.1 Of this statistic, about 20 million Filipinos use electronic wallets (e- 
wallets), which is a significant fraction of the country's total population of just over 100 
million.2 The pandemic likewise resulted in a 52% increase in the number of Filipinos 
who shop online.3
As ever-renewing financial technologies ("fintech") permeate Philippine society, 
new ways of perpetrating financial crime, enabled by these technologies, also emerge. 
The introduction of fintech has spiked the commission of cybercrimes that take 
advantage of technologies to perpetrate phishing and launder money. Top examples 
that pervade today's news are e-commerce scams, loan scams, credit-for-sex scams, 
and internet love scams. While banks and other financial institutions have been 
mandated by the Bangko Sentral ng Pilipinas (BSP) via various memoranda to adopt 
measures to protect financial consumers, the enactment of a supporting law is needed 
to fully mitigate fintech-related crimes.
This bill seeks to define and penalize fintech-related offenses to raise awareness 
of their occurrence and significantly deter their commission. Moreover, in view of their 
damaging effects on the economy, the bill seeks to declare the commission of certain 
fintech crimes, when done in large scale, as a form of economic sabotage and a heinous
"E-Wallets and Anti-Money Laundering in the Philippines" 17 August 2022. Tookitaki Thanes
Co. https://WWW.tookitaki.com/hloq/news-vievvs/e-wallets-and-anti-money-laundering-in-the-
Philippines
"GCash is building a cashless ecosystem" GCash website.
https://www.acash.eom/# :~:text=As%20of%202019%2C%20GCash%20has,partner%20merc
hants%20across%20the%20country 
Id. at 1.
1


crime punishable by the maximum penalty allowed by law. The emerging new market 
of fintech should be taken full advantage of for its gains and not utilized for the 
enhanced perpetration of online crime.
In view of the foregoing, the immediate approval of this bill is earnestly sought.
IMEE R. MARCOS


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:'h lint I
of tilC fe ■
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
23 JAN 12 P 3 32
S.B.
SENATE
No. 1 GG3
RCCcIVED BY-------
Introduced by SENATOR IMEE R. MARCOS
AN ACT-
PENALIZING FINTECH CRIME, PROVIDING PENALTIES 
THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phiiippines in Congress 
assembied:
Section 1. Short Title. - This Act shall be known as \he*Fintech Crime Prevention 
Act of202J'.
Sec. 2. Declaration of Policy. - The State recognizes the vital role of banks, 
payment service providers, and the general banking public in promoting and 
maintaining a stable and efficient financial system. The State also acknowledges that 
in the advent of electronic commerce (e-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 undertake measures to protect all persons 
from falling prey to the various cybercrime schemes by regulating the use of bank 
accounts, electronic wallets (e-wallets), and other financial accounts, and preventing 
their use in fraudulent activities. Furthermore, due to the deleterious effect on the 
economy, the large-scale commission of certain crimes under 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. - For purposes of this Act, the following terms are 
hereby defined as follows:
a. Account Takeover refers to a form of identity theft and fraud, where a 
malicious third party successfully gains access and control of a user's financial accounts;
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 Emailing or Mass Mailing refers to the act of sending an electronic mail 
(e-mail) in mass, with at least fifty (50) or more recipients;


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d. Entity refers to natural or juridical persons, including corporations,
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partnerships, associations, organizations, joint ventures, government agencies or
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instrumentalities, Government-Owned and -Controlled Corporations (GOCCs), or any
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other legal entity, whether for profit or not-for-profit;
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e. Electronic Money (E-Money) shall refer to a monetary value stored in a
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transaction account that is not a deposit and non-interest-bearing that was issued,
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created, or accepted by a bank - and is:
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i. 
electronically-stored in an instrument or device;
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ii. 
denominated in or pegged to the Philippine Peso or other foreign
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currencies;
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pre-funded by customers to enable payment transactions through the use
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of a transaction account;
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iv. 
accepted as a means of payment by the issuer for its customers or by
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other persons or entities including merchants/sellers;
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V. 
issues against receipt of funds of an amount equal to the monetary value
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issued; and
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vi. 
withdrawable in cash or cash equivalent or transferrable to other
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accounts/instruments that are withdrawable in cash.
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f. Electronic Wallet (E-wallet) refers to a digital value stored in either a software
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or application which the users can use for financial transactions such as payments, fund
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transfers, top-ups or cash in and/or withdrawals, among others. Example of e-wallets
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are e-money or virtual asset accounts stored in mobile or web-based apps;
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g. Financial Technology (Fintech) refers to new technology that improves and
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automates the delivery and use of financial services;
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h. Money Mule refers to any person who obtains receives, acquires, or transfers
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or withdraws money, funds, or proceeds derived from crimes, offenses or social
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engineering schemes, on behalf of others, in exchange for commission or fee, and
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those who commit the acts under Section 4(a) of this Act;
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i. Other Financial Accounts refer to new or emerging forms of financial accounts
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other than bank accounts and e-wallets;
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j. Phishing refers to a social engineering scheme of posing as a legitimate or
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trusted entity, or as a representative of a legitimate or trusted entity mainly through
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electronic communication In order to obtain sensitive identifying information of another
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by illegally accessing an individual's account;
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k. Sensitive Identifying Information refers to any information that can be used
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to access an Individual's financial accounts such as, but not limited to usernames,
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passwords, bank account details, credit card, debit card, and e31 wallet information,
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among other electronic credentials; and
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I. Social Engineering Scheme, in the context of information security, refers to
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the use of deception or fraudulent means to obtain confidential or personal information,
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including sensitive identifying information, of another entity. This includes phishing and


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any of its variations such as but not limited to vishing, smishing, as well as other similar 
forms of deception.
Sec. 4. Prohibited Acts. - The following acts shall constitute an offense 
punishable under this Act:
a. Money mule. It shall be prohibited for any person to act as a money mule as 
defined under this law. The following acts shall also constitute as an offense:
1. Opening a bank account, e-wallet account 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 account, 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 crime, offenses, or social 
engineering schemes;
3. Buying or renting a bank account, e-wallet account or other financial account 
for the purpose of receiving or transferring or withdrawing proceeds derived 
from crimes, offenses or social engineering schemes;
4. Selling a bank account, e-wallet account or other financial account for the 
purpose of receiving or transferring or withdrawing proceeds derived from 
crimes, offenses or social engineering schemes;
5. Account takeover or using or borrowing a bank account, e-wallet account or 
other financial account for the purpose of receiving or transferring or 
withdrawing proceeds derived from crimes, offenses, or social engineering 
schemes; and
6. Recruiting, enlisting, contracting, hiring or inducing any person to act as a 
money mule.
b. Social Engineering Schemes. Any person performing any social engineering 
schemes, including phishing and any variations thereof, 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.
Banks and other financial institutions shall ensure that access to their clients' 
accounts are protected by the highest level of security, including biometric 
authentication, security redundancies, and other account-holder authentication and 
verification processes. Failure of these institutions to exercise proper diligence shall 
result to immediate restitution of amounts lost.


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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 is present:
1. The offense was committed by a syndicate;
2. The offense was committed in large scale; or
3. The offense was committed by way of bulk email or mass mail.
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 under Section 4 of this Act shall be held liable; and
b. Any person who willfully attempts to commit any of the offenses enumerated 
under Section 4 of this Act shall be held liable.
SEC. 6. Higher Penalty for Acts Committed Under the Revised Pena! Code and 
Crimes Under Special Laws Using Money Mule and Social Engineering Schemes. - All 
crimes defined and penalized by Republic 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 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) shall be punished with imprisonment of prision correccional or a fine of at least 
One hundred thousand pesos (Php 100,000.00) but not exceeding Two hundred 
thousand pesos (Php 200,000.00), or both.
Any person found guilty of any of the punishable acts enumerated in Section 
4(B) shall be punished with imprisonment of prision mayor or a fine of at least Two 
hundred thousand pesos (Php 200,000.00) but not exceeding Five hundred thousand 
pesos (Php 500,000.00), 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, a minor, insane, or imbecile at the 
time the offense was committed or attempted.
Any person found guilty of any of the offenses that constitutes economic 
sabotage under Section 4(C) shall be punished with life imprisonment and a fine of not


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less than One million pesos (Php 1,000,000.00) but not more than Five Million Pesos 
(Php 5,000,000.00).
Any person found guilty of any of the punishable acts enumerated in Section 5 
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 (Php 
100,000.00) but not exceeding Five hundred thousand pesos (Php 500,000.00) or both.
Sec. 9. Jurisdiction. - The Regional Trial Court (RTC), 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. 10. Freezing of Financial Account. - Upon verified complaint by an 
aggrieved party under this Act and after determination that probable cause exists that 
any unlawful activity as defined in Section 4 hereof has been committed, the RTC may 
issue a freeze order of any financial account identified to have been used in the 
commission of the crime, which shall be effective immediately. The freeze order shall 
be for a period of twenty (20) days unless extended by the court. In any case, the 
court should act on any petition to freeze within twenty-four (24) hours from the filing 
thereof. A person or entity whose account has been frozen may file a motion to lift the 
freeze order which the court must resolve before the expiration of the twenty (20)-day 
original freeze order.
Sec. 11. Genera! 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. 12. Enforcement. - The NBI and PNP shall be responsible for the efficient 
and effective law enforcement of the provisions of this Act. The cybercrime unit or 
center established under Section 10 of Republic Act No. 10175 shall exclusively handle 
all cases involving violations of this Act: Provided, That they shall coordinate closely 
with the Bangko Sentral ng Pilipinas and other relevant government agencies in the 
investigation and enforcement of cybercrime warrants and related orders.
Sec. 13. Response to Consumers. - Banks, Non-Bank Financial Institutions, and 
other pertinent Bank and Non-Bank Institutions shall immediately and effectively 
respond to all complaints related to social engineering attacks other cybercrimes 
perpetrated upon consumers. They shall comprehensively investigate each case.


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provide continuous updates to consumers, coordinate with the proper authorities, and 
exhaust all means to ensure that victims are able to recover their monetary loss, if any.
The said institutions shall likewise institute measures to strengthen their online 
platforms, payment systems, and data security, among others.
Sec. 14. Implementing Rules and Regulations. — Within sixty (60) days from 
the effectivity of this Act, the Bangko Sentral ng Pilipinas, Anti-Money Laundering 
Council (AMLC), Department of Justice (DOJ), Department of Information and 
Communications Technology (DICT), National Bureau of Investigation (NBI) and the 
Philippine National Police (PNP) shall promulgate the rules and regulations to effectively 
implement the provisions of this Act.
These agencies shall formulate an Anti-Scam/Financial Fraud Roadmap which 
shall include detailed measures on, among others, education and information 
dissemination on financial scams and its prevention; enhanced detection, reporting, 
and prosecution of persons behind money mules, social engineering schemes, and 
other financial cybercrimes; and the training of responsible officers and personnel to 
ensure effective enforcement and prosecution of cases under this Act.
Additionally, 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. 15. Appropriation. - The amount necessary for the effective 
implementation of this Act shall be incorporated in the General Appropriations Act.
Sec. 16. Separability Clause. - If for any reason, any provision of this Act is 
declared invalid or unconstitutional, the remaining parts or provisions not affected shall 
remain in full force and effect.
Sec. 17. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations or parts thereof which are contrary or inconsistent with the provisions of 
this Act are hereby repealed, amended or modified accordingly.
Sec. 18. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,