MASTERCARD has officially launched in the Philippines its anti-money laundering service that leverages artificial intelligence to flag potential financial crime.
The Philippines is Mastercard’s first Asia-Pacific market to implement its TRACE or Trace Financial Crime solution in collaboration with interbank network BancNet, Inc., onboarding 36 domestic banks, it said in a statement on Thursday.
BancNet is the switch operator of the Philippines’ real-time payment (RTP) gateway InstaPay.
“The Philippines has seen rapid digital payments growth, making it more important than ever to strengthen defenses against financial crime. With the rampancy of cybercrime affecting consumers and financial institutions alike, the urgency for stronger, more collaborative fraud prevention solutions has never been greater,” Mastercard Philippines Country Manager Simon A. Calasanz said in a statement on Thursday.
“As scams grow more sophisticated, advanced tech-powered prevention and monitoring capabilities are critical. Our partnership with Mastercard and leveraging TRACE gives us and the network participants the intelligence to help detect fraud faster, making scam prevention sharper and more effective,” BancNet Chief Executive Officer Elmarie S. Reyes said.
The Philippines’ Cybercrime Investigation and Coordinating Center (CICC) received 10,004 online scam complaints in 2024, with losses from incidents valued at nearly P198 million, it said this month.
Mastercard said the rise in real-time payments has made it a target for money launderers and criminals who use financial accounts in romance and investment scams.
TRACE uses payments data from multiple financial institutions to track financial crime across a payments network, flagging fraudulent transaction patterns and alerting banks about suspicious accounts.
“The solution allows participating financial institutions to quickly and accurately trace dispersed illicit funds across the RTP system, identify money mule activity throughout the network, and proactively highlight suspected money laundering accounts — all of which will allow them to better adhere to the country’s new Anti-Financial Account Scamming Act,” Mastercard said.
The United Kingdom is the only other market in the world to have implemented TRACE.
“The launch of TRACE in Asia Pacific marks a transformative step toward safeguarding the integrity of Real-Time Payments while combatting the corrosive effects of financial crime. By ensuring that transactions remain secure and compliant, TRACE helps to protect consumers and financial institutions, while also fostering trust in the digital economy—which will be critical for the region’s economic growth,” Mastercard Asia Pacific Services Executive Vice-President Matthew Driver said.
“Mastercard is proud to have collaborated with BancNet on its pilot rollout in the Philippines and is ready to collaborate with other stakeholders across the region to implement TRACE to create a stronger, more resilient global financial system.” — AMCS
