The Securities and Exchange Commission – Tarlac Extension Office (SEC-TAREO) has issued a stern warning to the public against lending, renting, or sharing financial accounts such as bank accounts, e-wallets, and remittance platforms, stressing that this practice—commonly referred to as “money muling”—is now considered a serious criminal offense.
In a recent advisory, the SEC emphasized that individuals may unknowingly become accomplices in illegal financial activities when they allow their accounts to be used by third parties. This act is strictly prohibited under Republic Act No. 12010 or the Anti-Financial Account Scamming Act (AFASA), which was signed into law in July 2024.
SEC-TAREO Director Richard Laus explained that “money mules” are often exploited by criminal syndicates to receive, move, or withdraw funds from illicit activities, including advance-fee scams, Ponzi schemes, money laundering, and unauthorized investment solicitations.
“The SEC is reminding everyone—whether you’re a student, small business owner, or regular e-wallet user—that allowing someone else to use your financial account, even once, could make you an accomplice to crime,” Laus warned.
He urged the public to be cautious of any unusual requests involving the use of their financial accounts, pointing out that easy money offers are often linked to scams.
“If someone asks to use your bank or e-wallet account for a transaction you don’t understand or control, that’s a red flag. Be vigilant. Be informed. Be responsible,” he said.
Under AFASA, those found guilty of acting as money mules may face up to 14 years of imprisonment and fines of up to ₱5 million. The law aims to crack down on digital and financial fraud by holding accountable those who knowingly—or even unknowingly—facilitate the movement of illegally obtained funds.
The SEC also stressed that ignorance of the law is not a valid excuse. Even individuals who are unaware of the illicit origins of the money involved may still be penalized for enabling suspicious transactions through their financial accounts.
To combat these threats, the SEC encourages the public to report any suspicious activity or scams involving financial accounts to the SEC Enforcement and Investor Protection Department via email at epd@sec.gov.ph.
To help prevent fraud, the SEC also recommends downloading the SEC Check App, available for free on Google Play and the iOS App Store. The mobile app allows users to verify if a company or investment offering is registered and authorized to solicit investments.
For more information and updates on financial protection, the public is advised to visit www.sec.gov.ph or follow the SEC’s official social media accounts at linktr.ee/secphilippines.
