Asia-Pacific central banks form task force against digital scams

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) and other central banks in Asia-Pacific are forming a task force to strengthen information sharing against digital scams as financial authorities step up cooperation on emerging risks to the financial system.

BSP Governor Eli Remolona Jr. and his counterparts under the Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP) approved initiatives aimed at strengthening consumer protection and helping the financial sector manage risks arising from artificial intelligence (AI).

Among the initiatives is the creation of a task force that will facilitate information sharing among member central banks to improve scam prevention and detection.

The move builds on an earlier commitment by EMEAP governors to deepen exchanges on digital fraud and scams affecting the financial sector, which was among the issues discussed during their July 23 meeting in Singapore.

The regional central banks also discussed how the financial industry can harness the benefits of AI while managing risks associated with its use. EMEAP governors examined how AI developments could interact with economic structures and affect financial stability, including potential risks arising from large investments in the technology.

Remolona emphasized the importance of stronger regional cooperation as financial systems and economies contend with challenges both within the region and globally.

In a separate meeting on July 24, EMEAP governors and heads of supervisory authorities exchanged best practices on the responsible adoption and use of AI by financial institutions.

Participants underscored the need for responsible AI use to protect financial consumers and enable financial institutions to manage risks while taking advantage of the technology’s potential. They also discussed the macro-financial implications of supply disruptions in the region.

The governors likewise endorsed the launch of a training program on central bank policy and operations for junior central bankers.

EMEAP groups 11 central banks and monetary authorities across East Asia and the Pacific, including the BSP, the People’s Bank of China, the Bank of Japan, the Bank of Korea, the Reserve Bank of Australia and the Monetary Authority of Singapore.