Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
REGULATING THE USE OF BANK ACCOUNTS AND E-WALLETS AND 
PROHIBITING THE USE THEREOF FOR UNUSUAL AND SUSPICIOUS FINANCIAL 
ACTIVITY 
Cybercrime has risen with the increase in the big shift in the way we live our lives and the 
use of the Internet. It is unsurprising that 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 accessory to a financial crime. 
There is no punishment that can deter these criminal actions. 
This proposed measure enumerates and defines punishable offenses such as money 
mule 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 in 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 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. 
September 2, 2021
2:01 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
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 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 
Regulation Act.” 
SECTION 2. Declaration of Policy. – The State recognizes the vital role of both banks 
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 and lure 
account holders to aid them in perpetrating fraudulent activities. It shall be the policy of 
the State to undertake measures to protect all persons from falling prey to the various 
cybercrime schemes by regulating and prohibiting the use of bank accounts and 
electronic wallets (e-wallets) for unusual and suspicious financial activities. Furthermore, 
due to the deleterious effect on the economy, the State declares that the commission of 
certain crimes under this Act when done in bulk or in large scale is a form of economic 
sabotage and a heinous crime and shall be punishable to the maximum level allowed by 
law. 
SECTION 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 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-mail) in mass. 
(C) Entity refers to 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. 
(D) Money mule refers to any person who electronically receives, acquires, or 
transfers money, funds, or proceeds derived from phishing or other cybercrime. 
(E) Phishing refers to a social engineering scheme to obtain or any attempt to obtain 
sensitive identifying information by disguising as a trusted entity in an electronic 
communication for the purpose of illegally accessing a victim’s online account. 
(F) 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. 
(G) Social engineering scheme in the context of information security refers to the 
use of deception to manipulate individuals into divulging confidential or personal 
information that may be used for fraudulent purposes. This includes phishing and 
any of its variations such as but not limited to vishing, smishing and other similar 
forms of deception. 
(H) Suspicious activity refers to any online transaction, regardless of amount, where 
any of the following circumstances exists: 
1. there is no underlying legal or trade obligation, purpose or economic 
justification; 
2. the number of online transactions or amount involved is observed to deviate 
from the profile of the client or the client’s past transactions; 
3. the transaction is in any way related to an unlawful activity or to a social 
engineering scheme or cybercrime that is about to be committed, is being or 
has been committed; 
4. taking into account all known circumstances, it may be perceived that the 
client’s transaction is structured in order to aid the perpetrators of an unlawful 
activity, phishing scheme or cybercrime 
5. any transaction that is similar, analogous or identical to any of the foregoing. 
(I) Unusual activity refers to the use of one’s bank account or e-wallet that is not in 
accordance with the terms, conditions, and permitted purpose imposed by the bank 
or financial entity. 
 
SECTION 4. Prohibited Acts. – The following acts shall constitute an offense 
punishable under this Act: 
 
(A) Money mule. It shall be prohibited for any person who, with intent to gain for 
himself or for another, electronically obtains, receives, acquires, or transfers money, 
funds, or proceeds derived from a suspicious activity, phishing or other cybercrime 
offense. Mere electronic receipt or transfer of money, funds, or proceeds which has 
been subject of a suspicious activity, phishing scheme or other cybercrime shall be 
prima facie evidence that the person is a money mule. 


 
 
 
The following acts shall also constitute an offense: 
(1) 
Opening a bank or e-wallet account and using or allowing the use 
thereof, to receive or transfer proceeds derived from a suspicious activity 
or cybercrime; 
(2) 
Opening a bank or e-wallet account under a fictitious name or using the 
identity or identification documents of another to receive or transfer 
proceeds derived from a suspicious activity or cybercrime; 
(3) 
Buying or renting a bank or e-wallet account for the purpose of receiving 
or transferring proceeds derived from a suspicious activity or cybercrime; 
(4) 
Selling a bank or e-wallet account for the purpose of receiving or 
transferring proceeds derived from a suspicious activity or cybercrime; 
(5) 
Account takeover or using or borrowing a bank or e-wallet account for 
the purpose of receiving or transferring proceeds derived from a 
suspicious activity or cybercrime; 
(6) 
Recruiting, enlisting, contracting, hiring or inducing any person to 
electronically obtain, receive, acquire, or transfer money, funds, or 
proceeds derived from a suspicious activity or cybercrime. Recruitment 
of money mules when committed by a syndicate or in large scale shall 
be considered as an offense involving economic sabotage. 
 
Recruitment or utilization of money mules is deemed committed by a 
syndicate if carried out by a group of three (3) or more persons 
conspiring or confederating with one another. It is deemed committed in 
large scale if committed against three (3) or more persons individually or 
as a group. 
 
(B) Phishing. It shall be prohibited for any person to obtain or attempt to obtain 
through a social engineering scheme, sensitive identifying information by disguising 
as a trusted entity in an electronic communication for the purpose of illegally 
accessing a victim’s online account. 
 
An individual or entity is guilty of phishing if, with intent to defraud or injure an 
individual or entity, or with knowledge that one is facilitating a fraud or injury to be 
perpetrated by anyone: 
(1) Makes any electronic communication disguising to be a trusted entity or on 
behalf of a trusted entity; and 
(2) Uses electronic communication to induce, request, or solicit any person to 
provide sensitive identifying information. 
 
(C) Economic sabotage. Any offense perpetrated under this subsection using a bulk 
e-mail, mass mailer or any service, software, or other method of delivery calculated 
to utilize the massive reach of the internet to reach the maximum number of victims, 
pursuant to a “phishing” or other similar fraudulent scheme, shall be punished as an 
act of economic sabotage.” 
 


 
 
SECTION 5. Other Offenses. – The acts involving or having relation to the following 
shall also constitute an offense: 
(a) Aiding or Abetting a Money Mule. – Any person who willfully abets or aids in the 
commission of any of the offenses enumerated in this Act shall be held liable. 
(b) Attempt in the commission of a crime. – Any person who willfully attempts to 
commit any of the offenses enumerated in this Act shall be held liable. 
 
SECTION 6. All crimes defined and penalized by the Revised Penal Code, as amended, 
and special laws, if committed by, through and with the use of information and 
communications technologies 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. 
 
SECTION 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. 
 
SECTION 8. Penalties. – Any person found guilty of the punishable act under Section 
4(A) 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. 
 
Any person found guilty of any of the punishable acts enumerated in Section 4(B) shall 
be punished with imprisonment of prision correccional or a fine of at least One hundred 
thousand pesos (PhP100,000.00) but not exceeding Two hundred thousand pesos 
(PhP200,000.00), or both. 
 
Provided, however, That the maximum penalty shall be imposed if the target or victim/s 
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 constitutes economic sabotage under 
Section 4(C) 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). 
 
SECTION 9. Implementing Rules and Regulations. – Within thirty (30) days from the 
effectivity of this Act, the Bangko Sentral ng Pilipinas (BSP) Department of Justice (DOJ), 
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. 
 
SECTION 10. Jurisdiction. – The Regional Trial 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. 
 
SECTION 11. 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. 
 
SECTION 12. Separability Clause. If any separable provision of this Act is declared 
unconstitutional, the remaining provisions shall continue to be in force. 
 
SECTION 13. 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. 
 
SECTION 14. Effectivity. This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation. 
 
Approved,