Manila Times
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Friday, May 30, 2025
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SEC Issues Warning Against Money Muling in the Philippines
The Securities and Exchange Commission cautions public on financial responsibilities as scams proliferate.
The Securities and Exchange Commission (SEC) of the Philippines has issued a warning to users of electronic wallets and online financial platforms, advising them against sharing, lending, or renting their personal financial accounts to others.
The caution comes amid increasing reports of money muling activities linked to various financial scams.
The SEC specifically highlighted that individuals and companies with accounts on platforms like GCash, Maya, and Palawan Express may unwittingly become involved in criminal schemes by allowing their accounts to be used by others.
Such activities may include advance fee loan scams, Ponzi schemes, illegal investment-taking schemes, and money laundering.
Under Philippine law, particularly the Anti-Financial Account Scamming Act, these practices are prohibited, and the use of mule accounts for transactions derived from illegal activities is a violation.
The SEC warns that individuals caught engaging in money muling could face penalties of up to 14 years of imprisonment, fines reaching up to 5 million pesos, or both, depending on judicial discretion.
GCash, one of the largest e-wallet providers in the Philippines, has stated its commitment to cooperate with law enforcement agencies in addressing fraud related to money mule activities, including measures to prevent accounts identified as involved in such activities from operating.
The SEC also reported a rise in advance fee loan scams, where victims are manipulated into paying fees ostensibly for the release of loans.
These scams mislead individuals by promising that any fees will be deducted from the loan amount itself.
The SEC reiterated that legitimate lending and financing companies do not require advance payment as a prerequisite for loan approval.
Furthermore, the SEC indicated that any claims stating that advance fees are necessary to facilitate loans are false and violate legal standards.
The organization urged individuals who encounter such schemes to refrain from making payments and to report incidents to the Philippine National Police, the National Bureau of Investigation, and the SEC.
The caution comes amid increasing reports of money muling activities linked to various financial scams.
The SEC specifically highlighted that individuals and companies with accounts on platforms like GCash, Maya, and Palawan Express may unwittingly become involved in criminal schemes by allowing their accounts to be used by others.
Such activities may include advance fee loan scams, Ponzi schemes, illegal investment-taking schemes, and money laundering.
Under Philippine law, particularly the Anti-Financial Account Scamming Act, these practices are prohibited, and the use of mule accounts for transactions derived from illegal activities is a violation.
The SEC warns that individuals caught engaging in money muling could face penalties of up to 14 years of imprisonment, fines reaching up to 5 million pesos, or both, depending on judicial discretion.
GCash, one of the largest e-wallet providers in the Philippines, has stated its commitment to cooperate with law enforcement agencies in addressing fraud related to money mule activities, including measures to prevent accounts identified as involved in such activities from operating.
The SEC also reported a rise in advance fee loan scams, where victims are manipulated into paying fees ostensibly for the release of loans.
These scams mislead individuals by promising that any fees will be deducted from the loan amount itself.
The SEC reiterated that legitimate lending and financing companies do not require advance payment as a prerequisite for loan approval.
Furthermore, the SEC indicated that any claims stating that advance fees are necessary to facilitate loans are false and violate legal standards.
The organization urged individuals who encounter such schemes to refrain from making payments and to report incidents to the Philippine National Police, the National Bureau of Investigation, and the SEC.
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