The Bangko Sentral ng Pilipinas (BSP) said Tuesday it is investigating bank accounts linked to a flood-control corruption scandal, leveraging a new law for the first time.
The BSP said in a statement it launched an inquiry into the accounts of individuals implicated in the controversy under the Anti-Financial Account Scamming Act (RA 12010), or AFASA, which took effect in June.
It said the investigation focuses on “money muling activities,” which the law criminalizes. Under Section 4(a) of AFASA, it is a crime to use a financial account to obtain, receive, deposit, transfer or withdraw proceeds known to be derived from crimes.
The BSP said its action follows a request filed on Monday by Public Works Secretary Vince Dizon.
“The BSP is using AFASA for the first time to join and assist other agencies in investigating and prosecuting the persons alleged to be involved in these crimes,” said BSP general counsel Roberto Figueroa.
“We are also keen to leverage this authority to uphold the integrity of our financial system against criminal actors,” he said.
The BSP reminded regulated entities to comply with the temporary holding of funds under Section 7 of AFASA, as implemented by BSP Circular No. 1215, series of 2025.
The BSP provided key support for the passage of AFASA, which gives it the authority to investigate and inquire into bank accounts involved in prohibited activities. Under the law, provisions on the secrecy of deposits and data privacy do not apply to financial accounts subject to the BSP’s investigation.
Material information secured by the BSP can be used for the prosecution or investigation of AFASA-related offenses.
Penalties for money muling activities under Sec. 4(a) include six to eight years imprisonment and/or a fine of 100,000 to 500,000 pesos.
A conviction also carries civil liabilities, including restitution for damage or unwarranted benefit. Properties and assets used in the commission of the prohibited acts are also subject to civil forfeiture.
The BSP said its move is in addition to a freeze order on bank accounts issued by the Court of Appeals on Tuesday in response to a petition filed by the Anti-Money Laundering Council (AMLC).
