Press Release
January 20, 2022

Gatchalian presses bill to enhance surveillance powers of financial regulators vs. cybercriminals

Senator Win Gatchalian pressed for the passage of the bill that will give financial regulators the power to enhance the conduct of surveillance against cybercriminals given the massive shift in digital financial transactions.

"Hackers and fraudsters are becoming very sophisticated and if we don't stay ahead of the curve and no one is mandating to stay ahead of the curve we will see cases like what happened in BDO last year," Gatchalian said.

In response to the senator's query during Monday's hearing on how often the Bangko Sentral ng Pilipinas (BSP) updates the standards on cyber security being adopted by the banks, the BSP said that an on-site supervision is done once a year and there are also mechanisms for off-site surveillance.

As the senator pushed for the enactment of Senate Bill No. 2287 or the proposed "Financial Products and Services Consumer Protection Act," he likewise urged the BSP to devise means that will make it harder for cyber criminals from taking over banks and other financial accounts of consumers.

"I am trying to understand the proactive approach of the BSP and the periodic audits or standard audits that the institution is doing to make sure that banks are implementing cyber security audits, policies and programs that will prevent cyber fraud from happening," Gatchalian said.

Under Gatchalian's bill, additional powers will be given to financial regulators such as the BSP, Securities and Exchange Commission (SEC), Insurance Commission (IC), and Cooperative Development Authority (CDA) to include adjudication authority to implement corrective measures, improve redress mechanisms, and enhance marketing conduct and surveillance. They will also be able to impose enforcement action on their respective supervised financial service providers for non-compliance of the provisions of the law and other existing laws.

"We have to address and cover the loopholes in the law and improve the capacity of the BSP and other financial regulators insofar as clamping down on the crimes committed by fraudsters and hackers are concerned. Our financial regulators should always be one step ahead of these cyber criminals," Gatchalian stressed.

The Vice Chairperson of the Senate Committee on Banks, Financial Institutions and Currencies also underscored the significance of the measure as under the current set up, several financial regulators, particularly the BSP and SEC, are not empowered to conduct hearings and decide on consumer-related complaints.


Gatchalian: Surveillance powers ng financial regulators laban sa cybercriminals paigtingin

Isinusulong ni Senador Win Gatchalian ang pagpasa ng panukalang batas na magbibigay kapangyarihan sa mga financial regulators na paigtingin ang pagsasagawa ng surveillance laban sa mga cybercriminals bunsod ng lumalawak na digital financial transactions.

"Ang mga hackers at manloloko ay nagiging napaka sopistikado na sa kanilang mga pamamaraan at kung hindi tayo magiging maagap, magpapatuloy ang mga kasong tulad ng nangyari sa BDO noong nakaraang taon," sabi ni Gatchalian.

Bilang tugon sa pag-usisa ng senador sa nakaraang pagdinig ng Senado kung gaano kadalas i-update ng Bangko Sentral ng Pilipinas (BSP) ang mga pamantayan o standards sa cybersecurity ng mga bangko, sinabi ng BSP na kada isang taon isinasagawa ang on-site supervision at mayroon ding mga mekanismo para sa off-site surveillance.

Tila hindi kumbinsido, hinimok ni Gatchalian ang naturang institusyon na gumawa ng mekanismo upang mahirapan ang mga cyber criminals sa pag hack ng financial accounts ng mga konsyumer. Ang panukalang batas na muling isinulong ng senador ay ang Senate Bill No. 2287 o "Financial Products and Services Consumer Protection Act."

"Pinipilit kong intindihin ang proactive approach ng BSP pati na ang ginagawa nilang periodic audits upang masiguro na ang mga bangko ay nagpapatupad ng cyber security audits, mga polisiya at programa na makakahadlang sa pagsasagawa ng anumang uri ng cyber fraud," sabi ni Gatchalian.

Sa ilalim ng panukalang batas ni Gatchalian, bibigyan ng karagdagang kapangyarihan ang mga financial regulators tulad ng BSP, Securities and Exchange Commission (SEC), Insurance Commission (IC), at Cooperative Development Authority (CDA) na makapagbigay hatol at maiwasan ang mga pagkakamali, paghusayin ang mekanismo sa pagtugon sa mga reklamo at paghusayin ang marketing conduct at surveillance. Maaari rin silang magpatupad ng mga kinakailangang aksyon sa kanilang pinangangasiwaang financial service providers sakaling hindi ito tumalima sa mga probisyon ng batas at iba pang umiiral na mga batas.

"Kailangan nating tugunan kung may mga butas ang batas at palawigin ang kapasidad ng BSP at iba pang financial regulators upang mapigilan at masawata ang mga kawatan. Kailangang laging nauuna ang ating financial regulators at hindi dapat naiisahan ng cybercriminals," diin ni Gatchalian.

Sinabi rin ng vice chairperson ng Senate Committee on Banks, Financial Institutions and Currencies na mahalagang maisabatas ang naturang panukala dahil sa kawalan ng kapangyarihan ng mga financial regulators, partikular na ang BSP at SEC, na magsagawa ng mga pagdinig at magpasya sa mga reklamo ng konsyumer.

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