In a bold step to combat financial fraud, the Bangko Sentral ng Pilipinas (BSP) has issued Circular No. 1215, granting banks and other financial institutions the authority to temporarily freeze suspicious fund transfers. This regulation, signed on May 30, 2025, is part of the BSP’s broader push to protect consumers in an increasingly digital financial landscape.
Under the new rule, BSP-supervised institutions can freeze funds for up to 30 days—initially for five days, with a possible 25-day extension—if there’s reasonable suspicion of fraud, scams, or unauthorized access. This gives banks time to conduct a coordinated verification process to trace the origin of the funds and determine if they should be returned to the rightful owner.
When Can Banks Freeze Funds?
The freeze can be triggered by:
– A customer complaint
– A bank’s internal fraud detection system
– A request from another bank that detects suspicious activity
Banks are also allowed to share information with each other during investigations, even if such data is normally protected by privacy laws—though only for this specific purpose.
The rule does not apply to erroneous transfers (like sending money to the wrong account) or to credit card transactions, unless the credit card was used for a fund transfer.
This move is part of the BSP’s ongoing effort to boost trust in digital payments and protect consumers from cybercrime. With scams and phishing attacks on the rise, the ability to pause and investigate suspicious transactions could be a game-changer for financial security in the Philippines.
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