D. Anti-Financial Account Scamming Act (RA 12010, Secs. 3–5 and 16–21)

Anti-Financial Account Scamming Act (RA 12010)

A financial account under RA 12010 includes deposit, trust, investment, and credit card accounts, other transaction accounts maintained with financial institutions, and e-wallets. ¹ Money muling under Section 4(a) requires a purpose to obtain, receive, deposit, transfer, or withdraw proceeds known to be derived from crimes, offenses, or social engineering schemes; covered acts include using or allowing the use of an account, opening one under a fictitious or another person’s identity, buying, renting, selling, or lending an account, and recruiting others to do these acts. ²

A social engineering scheme under Section 4(b) involves obtaining another person’s sensitive identifying information through deception or fraud, resulting in unauthorized access to and control over that person’s financial account, by misrepresenting one’s authority or using electronic communications to obtain the information. ² Section 5 separately penalizes willfully aiding, abetting, or attempting a Section 4 offense, opening an account under a fictitious or another person’s identity, and buying or selling an account. ³

Money muling under Section 4(a) carries six to eight years’ imprisonment, a ₱100,000 to ₱500,000 fine, or both; for acts under items (1) to (4), the court must also order account closure and forfeiture as specified by the Act. ⁴ A Section 4(b) offense carries ten to twelve years’ imprisonment, a ₱500,000 to ₱1 million fine, or both, with a higher penalty where the target or victim was a senior citizen when the offense was committed. ⁴ Prosecution under RA 12010 does not preclude prosecution under the Revised Penal Code or other special laws. ⁵ The Regional Trial Court has jurisdiction over violations of the Act, including where an element occurs in the Philippines, specified technology is situated here, or the offense causes damage to a natural or juridical person who was in the Philippines when the offense was committed or whose financial account is maintained with an institution operating in the Philippines. ⁶