President Ferdinand Marcos Jr. signed Republic Act No. 12010, the anti-financial account scamming act (AFASA), in July 2024, a law that has since been used to charge foreigners arrested in a Philippine offshore gaming operator (POGO) scamming operation in Parañaque City1.
National Bureau of Investigation (NBI) Director Jaime Santiago said on Friday, February 28, that the bureau arrested 20 foreigners for alleged violation of section 4(b)(1) (social engineering schemes) of Republic Act No. 12010 or anti-financial account scamming act (AFASA)1. The NBI did not release the names of the foreigners1.
The operation stemmed from a complaint from the wife of a Chinese victim, who said her husband was being held against his will and worked as a customer service representative for a POGO company operating under the trade name "LWE," located in Aseana 3, West Tower, Parañaque City1. NBI operatives raided the company and rescued the victim, and authorities arrested the alleged captor, Liu Zhi Tao, also known as "Ren Jia"1. While in the company, the NBI discovered that the POGO hub was fully operational and that foreigners were allegedly engaged in online scamming activities1. This led to the arrest of the 20 foreigners, including Ren Jia, who faces an additional illegal detention case1. The foreigners have already undergone inquest proceedings before the Parañaque City prosecutor's office1.
Under AFASA, banks and other financial institutions are mandated to implement necessary security measures and fraud management systems to secure their clients' accounts1. The law also gives the Bangko Sentral ng Pilipinas the power to probe and inquire into financial accounts that may be involved in alleged illegal activities1. AFASA gave the Central Bank a free pass from rules on bank secrecy and data privacy in investigating bank accounts, e-wallets, and other financial accounts suspected to be involved in alleged crimes1.
In his third State of the Nation Address, Marcos announced his government's total ban on POGOs1. Under the order, the Philippine Amusement and Gaming Corporation was tasked to wind down and cease POGO operations by the end of 20241. But despite this ban, arrests still continue1. Just a few months after Marcos' directive, the Presidential Anti-Organized Crime Commission (PAOCC) raided a scam hub in Pasay City in October 2024, located just beside the World Trade Center1.
PAOCC director Winnie Quidato revealed during a Senate hearing in November 2024 that some big POGO companies are splintering into smaller groups, with some branding themselves as business process outsourcing companies to continue their operations1.
"So they employ different styles but most of them are becoming guerrilla groups working in 10s, 20s, whereas before they were operating in thousands. So just like what we found in Parañaque when we raided the Parañaque group, we saw a subdivision where POGOs occupied 45 houses within the subdivision."
What it means for players
The arrests show that POGO-linked scamming operations continued in the Philippines after Marcos announced the total ban and after the Philippine Amusement and Gaming Corporation was tasked to wind down and cease POGO operations by the end of 20241. For people who gamble in the Philippines, the enforcement activity described here concerns financial account scamming and social engineering schemes, the conduct charged under section 4(b)(1) of AFASA1. The law gives the Bangko Sentral ng Pilipinas authority to investigate bank accounts, e-wallets and other financial accounts suspected of involvement in alleged crimes, with exemptions from bank secrecy and data privacy rules1. Details of how AFASA affects ordinary licensed gambling transactions, or whether any licensed operator has been affected, have not been reported1.
What happens next
The 20 foreigners, including Ren Jia, have undergone inquest proceedings before the Parañaque City prosecutor's office1. Ren Jia faces an additional illegal detention case1. In warrantless arrests, nabbed individuals must be charged within 36 hours, based on rules1. No further court dates or outcomes have been reported1.
