The Securities and Exchange Commission (SEC) in Tarlac has warned residents of Central Luzon against “money mules.”
The agency said "money mules" are individuals used by criminal syndicates to receive, move, and withdraw proceeds from various fraudulent schemes such as advance fee loan scams; Ponzi schemes; money laundering activities; and other unauthorized investment solicitation operations.
"All residents of Central Luzon are warned against the unauthorized sharing, lending, or renting of personal financial accounts such as bank accounts, e-wallets such as GCash, Maya, remittance channels such as Palawan Express, or other financial accounts," the SEC stated.
The commission added that individuals, whether acting with awareness or without full understanding, may become conduits for illegal financial activities by allowing their financial accounts to be used by third parties.
This is a practice now strictly prohibited under Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act (AFASA), enacted in July 2024.
Under AFASA, individuals found acting as money mules may be held criminally and civilly liable.
They may face up to 14 years of imprisonment and a fine of up to five million pesos (P5,000,000.00).
The law targets the enablers of digital and financial fraud, holding accountable anyone who facilitates the laundering of illegally obtained funds.
The SEC stressed that "ignorance of the law" does not exempt one from liability.
Even if a person is unaware of the criminal source of the funds, the mere act of allowing his or her account to be used for suspicious transactions can be penalized under AFASA.
“The SEC is reminding everyone—whether you’re a student, a small business owner, or a regular e-wallet user—that allowing someone else to use your financial account, even once, can make you an accomplice to crime. Don’t be deceived by easy money. If someone asks to use your bank or e-wallet account for transactions you do not understand or control, that’s a red flag. Be vigilant. Be informed. Be responsible,” the agency said.
The SEC urged the public to report suspicious activities or scams involving financial accounts to the SEC Enforcement and Investor Protection Department via email at epd@sec.gov.ph.