The battle against financial cybercrime will be a long one. As finance technologies evolve, the number of people involved in digital transactions increases exponentially.
Our monetary authorities are looking forward to a near future when less physical money needs to be maintained as more transactions occur through digital means. Most payments may now be transacted in real time. But to move forward, more has to be done to make digital transactions more secure.
Even as our regulatory agencies exert their best efforts, more and more Filipinos are exposed to scams of every form. These range from phishing operations to identity theft.
A new law, the Anti-Financial Account Scamming Act (AFASA), provides strong reinforcement for the effort to defeat scamming.
Foremost, AFASA grants financial institutions the authority to temporarily freeze disputed funds. Previously, such authority was reserved only for the Bangko Sentral ng Pilipinas (BSP). We had only one undermanned parapet from which we could fight off the cybercriminals.
Under the new law, all the banks can hold funds for up to 30 days when there is reasonable suspicion of fraudulent activity. The BSP sets specific conditions for this to happen to guard against abuse. As a basic rule, banks freezing accounts are required to promptly report to the BSP.
Every bank now becomes a new parapet in the anti-scamming effort. BSP implementing rules are being developed to ensure that suspected funds are secured while suspicious activity is being investigated.
The law explicitly prohibits “money muling,” whether done knowingly or unknowingly. This refers to methods used by fraudsters to move illicit funds through the accounts of unwitting participants.
Ordinary bank clients found to have allowed their accounts to be used for “money muling” now face serious legal consequences. This includes possible imprisonment, depending on the gravity of the offense. This provision underscores the importance of vigilance and personal responsibility in managing one’s financial accounts.
A watchful and well-informed community of account holders multiplies the number of parapets ranged against financial scamming all the more. Every account holder now becomes a guardian helping secure the entirety of financial transactions in our economy.
The new law is more than just protective, by fostering a culture of accountability among our financial institutions and providing incentives for them to take consumer protection to heart.
By making financial transactions more secure, the law prepares us to rapidly transition to a future where nearly all transactions are moved to the digital space. This will add to the efficiency of our economic processes.
With this new law, the whole community is engaged in protecting the digital space where financial transactions happen most efficiently. This makes our economy readier for the digital future.
Efficient
As fuel prices spike, there is at least some consolation that we are paying a little less for electricity in the Meralco franchise area. In my own case, the combination of Meralco’s rate reduction, a new more energy-efficient refrigerator and greater conscientiousness in turning off unused lighting cut my bill by a third.
Over the past few years, the nation’s biggest distribution utility has been helping consumers manage energy costs more efficiently. With Meralco’s strict adherence to open bidding for power contracts, generation costs have been kept to as low as possible, given all the factors we cannot control such as the depreciating peso and increasing oil prices.
Size does matter in electricity distribution. Meralco has been effective in leveraging the volume of the energy its distributes to win the best pricing – including power purchased from the electricity spot market.
There is such a thing as economies of scale. The markedly superior efficiency of Meralco compared to the smaller electric cooperatives underscores this. Even as electricity distributed by the cooperatives costs substantially more, the small distributors constantly struggle with earning a profit. The cooperatives never have enough operating capital to improve on the technology they use. They do not have market clout to effectively bargain with the power generating companies.
Despite our thin power reserves, Meralco has managed, in cooperation with large companies who have generators, to avert brownouts. Although powerful storms at times force power outages, interruptions in the Meralco service area have been as brief as possible. Given the size of its operating capital, Meralco has been able to maintain an adequate number of service crews to deal with the emergencies we are heir to.
We are fortunate to have an efficient power distribution service in the National Capital Region, the center of gravity of the national economy. This asset helped all of us bring down unemployment and modernize our industries.
During the Senate hearings on Meralco’s application for franchise renewal, Sen. Joel Villanueva provided strong arguments in favor of the distribution utility. He emphasized the company’s strong commitment to consumer welfare. He tried to convince his colleagues that a stable and reliable electricity supply is essential in attracting investments, helping businesses thrive and fostering job creation.
There were a few stray voices demanding the franchise area be subdivided. Meralco, however, has proven that its size translates into world-class distribution reliability. Electricity is a thoroughly regulated industry and Meralco has demonstrated commitment to transparency in its operations.
Earlier, during hearings at the House, Rep. Joey Salceda, who is an economist, dared say the obvious: renewing this franchise is a no-brainer. If it ain’t broke, no need to tear it up.