Mastercard Launches AI-Powered Anti-Money Laundering Service in Philippines

Mastercard has launched its cutting-edge anti-money laundering solution in the Philippines, which uses artificial intelligence (AI) to tackle financial crime. This program, part of its TRACE (Trace Financial Crime) service, is the first to use the technology in the Asia-Pacific area. The service is being launched in partnership with BancNet, Inc., the Philippines' premier interbank network, and will be used by 36 local banks to improve fraud prevention efforts.

The Philippines' fast-expanding digital payments industry has made it an attractive target for fraudsters. According to Mastercard Philippines Country Manager Simon A. Calasanz, “The Philippines has seen rapid digital payments growth, making it more important than ever to strengthen defenses against financial crime.” With cybercrime harming both consumers and financial institutions, there has never been a greater need for stronger, more coordinated fraud prevention solutions.

Growing Cybercrime in the Philippines

Alarming numbers demonstrate the necessity for better fraud protection measures. In 2024, the Philippines' Cybercrime Investigation and Coordinating Center (CICC) recorded 10,004 online fraud complaints, totaling roughly ₱198 million in damages. Real-time payment platforms, such as InstaPay, have become a haven for money launderers and crooks looking to take advantage of financial accounts in romance and investment schemes.

Mastercard's TRACE solution solves these problems by examining payment data from numerous financial institutions. It detects fraudulent transactions, flags suspect accounts and notifies banks in real time. BancNet CEO Elmarie S. Reyes stressed the significance of this relationship, stating, “As frauds get increasingly complex, robust tech-powered prevention and monitoring capabilities are crucial. Our collaboration with Mastercard and use of TRACE provides us and network participants with the knowledge to spot fraud more quickly, making scam protection sharper and more successful.”

TRACE's Operations

TRACE is intended to track down illegal cash scattered over real-time payment networks, detect money mule operations, and flag suspicious money laundering accounts. This feature is especially important as the Philippines implements its new Anti-Financial Account Scamming Act, which aims to prevent financial fraud and safeguard consumers.

After the United Kingdom, the Philippines is only the second market in the world to deploy TRACE. Matthew Driver, Executive Vice-President of Mastercard Asia Pacific Services, emphasized the importance of this rollout: “The launch of TRACE in the Asia Pacific marks a transformative step toward safeguarding the integrity of Real-Time Payments while combating the corrosive effects of financial crime. TRACE serves to safeguard consumers and financial institutions by ensuring that transactions are secure and compliant, while also creating confidence in the digital economy—which is vital for the region's economic success.”

Step Towards a Secure Digital Economy

Mastercard's partnership with BancNet demonstrates the company's commitment to building a strong global financial system. The test implementation in the Philippines paves the way for greater acceptance in Asia-Pacific, where digital payment systems are quickly growing.

As financial crimes get more complex, integrating AI-powered solutions such as TRACE is critical for staying ahead of hackers. Mastercard and BancNet are not only safeguarding customers by improving fraud detection and prevention capabilities but also promoting confidence in the digital economy, which is vital for the region's long-term economic success.

With the successful deployment of TRACE in the Philippines, Mastercard is now ready to cooperate with other stakeholders across Asia-Pacific to ensure a safer and more secure financial environment for everybody.