SEC warns public on financing scams
Individuals found guilty of acting as money mules may face civil and criminal liabilities, including imprisonment of up to 14 years and fines of up to P5 million.
Daily TribuneIndividuals found guilty of acting as money mules may face civil and criminal liabilities, including imprisonment of up to 14 years and fines of up to P5 million.
The Securities and Exchange Commission (SEC) has issued fresh advisories warning the public against falling victim to advance fee loan scams and the illegal use of financial accounts as “money mules” by criminal syndicates.
The SEC cautioned individuals not to transact with persons or groups claiming to be affiliated with SEC-registered lending or financing companies, but who operate under a scheme requiring victims to pay fees before a loan is released.
“Claims that advance payment is required by the SEC before the release of a loan are false and contrary to law. The public is advised NOT TO BELIEVE these scammers as the Commission will not require the public to make an advance payment as a condition for the release of a loan,” the advisory read.
Guard bank accounts
The Commission also warned the public against sharing or lending their bank accounts, e-wallets, or other financial accounts, which may be used as conduits for financial crimes, including advance fee loan scams, Ponzi schemes and money laundering.
“The public is hereby reminded that being a ‘money mule,’ or a person allowing the use of his/her bank account, e-wallet, or online financial account to obtain, receive, depositing, transferring, or withdrawing proceeds that are known to be derived from illegal activities or financial scams are prohibited by law, under Republic Act 12010, otherwise known as the Anti-Financial Account Scamming Act (AFASA), enacted in July 2024,” the SEC said.
Under AFASA, individuals found guilty of acting as money mules may face civil and criminal liabilities, including imprisonment of up to 14 years and fines of up to P5 million.
