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| Photo courtesy of SEC Philippines official Facebook page |
Manila, Philippines—The Securities and Exchange Commission (SEC) has issued a stringent advisory, urging the public, including individuals and companies, to strictly refrain from sharing, lending, renting out, or allowing other people or entities to use their personal financial accounts.
This urgent warning, released on May 21, 2025, aims to combat the rising threat of financial scams by preventing the exploitation of "money mules."
The SEC emphasized that individuals or companies whose financial accounts are used in such a manner “may be used as ‘money mules’ by criminal syndicates to perpetrate various financial scams,” including advance fee loan scams, Ponzi schemes, money laundering activities, and other illegal investment-taking activities. This includes popular e-wallets such as GCash and Maya, online financial platforms like Palawan Express, and traditional bank accounts.
The advisory underscores the critical responsibility of account holders in safeguarding their financial instruments to prevent them from being used as conduits for illicit transactions.
The public is hereby reminded that being a "money mule" or a person allowing the use of their financial account for obtaining, receiving, depositing, transferring, or withdrawing proceeds known to be derived from illegal activities or financial scams is prohibited by law, pursuant to Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act (AFASA), enacted in July 2024. Persons found guilty under the AFASA may face civil and criminal charges, including imprisonment of up to fourteen (14) years and a fine of up to five million pesos (Php5,000,000.00).
The Commission's warning highlights that even unwitting participation as a money mule can implicate account holders in serious financial crimes, potentially leading to severe legal ramifications. This proactive measure aims to protect citizens from being inadvertently drawn into illegal activities and to disrupt the operational methods of scam syndicates.
The SEC advises the public to stay alert, be vigilant, and avoid suspicious transactions. Those who have fallen victim or wish to report such activities are advised to reach out to the SEC Enforcement and Investor Protection Department via email at epd@sec.gov.ph. The public is also encouraged to download the SEC Check App to verify investment legitimacy.
References:
Securities and Exchange Commission (SEC). (2025, May 21). ADVISORY ON THE UNAUTHORIZED USE OF PERSONAL FINANCIAL ACCOUNTS OR BEING "MONEY MULES".
