Sailing Through BSP Circular 1213: How Drona Pay Facilitates Future-Proof Fraud Compliance in the Philippines

The digital payments landscape of the Philippines is growing more rapidly than ever — from instant transfers to e-wallet expansion. However, with the fast innovation comes a steep increase in scams, mule accounts, and account takeovers.

To remain competitive, the Bangko Sentral ng Pilipinas (BSP) launched Circular No. 1213, enacting the Anti-Financial Account Scamming Act (AFASA). This historic regulation mandates all BSP-supervised Financial Institutions (BSFIs) to utilize real-time, intelligent fraud management systems (FMS) — capable of recognizing, intercepting, and reporting scams in real-time.

At Drona Pay, our cloud-native, real-time risk platform is specifically designed to enable BSFIs to meet and surpass these needs — making compliance a competitive strength.

1. Real-Time Detection of Fraud and Behavioral Insights

Circular 1213 requires institutions to utilize both machine learning models and rule-based models to identify behavioral anomalies — from simple velocity of transactions to more nuanced changes in user behavior.

How Drona Pay can assist:

Our Real-Time Transaction Monitoring Engine integrates a Low-Code/No-Code rules platform while also supporting ML models. It does real-time velocity checks, session behavior monitoring, and behavioral biometric analysis, mule account detection, chargeback prevention and detecting account takeover.

This enables banks, fintechs and payment processors to detect even the slightest indications of social engineering or remote access attacks — long before the transaction is finalized.

2. Account Protection and Device Security

BSP prioritizes safe authentication, anti-bot, and strong device integrity — such as barring rooted or jailbroken devices.

How Drona Pay assists:

With Device and IP Analytics, Drona Pay identifies risky behavior like VPN usage, impossible travel, and suspicious browser use.

It also identifies red flags such as new mobile/email updates, enabling institutions to initiate a Transaction Pause Period (TPP) or implement step-up authentication immediately.

3. Combating Mule Accounts and Money Laundering

As scam networks expand, Circular 1213 enlists stronger AML and scam detection measures that can detect mule activity in a timely manner.

What Drona Pay does:

Our AML & CFT module incorporates Graph Network Analysis to visualize suspicious relationships and fund movements. By mapping account interlinkages, investigators can track layered transactions and detect mule rings before they go viral — safeguarding customers as well as the larger financial ecosystem.

4. Clear Compliance and Operational Effectiveness

In addition to prevention, Circular 1213 also mandates transparent auditability and regulatory preparedness.

How Drona Pay can assist:

Our Data Analytics Platform consolidates data from core banking, cards, and payments to offer a comprehensive risk view. The integrated Case Management System simplifies investigations, ensures strict audit trails, and regulates reporting automation — optimizing compliance as well as transparency.

As the Philippines deepens its digital economy, BSP Circular 1213 establishes a global standard for forward-thinking, intelligence-driven fraud protection.

With Drona Pay, banks and other financial institutions don't merely comply — they establish real-time, robust systems that safeguard customers and promote digital confidence for years to come.