ANTI-FRAUD AND ILLEGAL ACTIVITY TERMS AND CONDITIONS

Definition of terms:‍
1. “Fraud” is any intentional act or omission designed to deceive or mislead a Party, and/or its customers to create an unfair or unlawful advantage, including but not limited to the following:
  - Misrepresentation;
  - Dishonesty;
  - Providing false statements or information;
  - Concealment of material facts;
  - Manipulation of documents, accounts, or transactions;
  - Processing and/or submission of illegitimate or fictitious transactions;
  - Abuse of services inconsistent with the purpose for which the Agreement and transactions were intended for; and
  - Acts or omissions done under analogous circumstances. Fraud includes acts or omissions of a Party’s employees, agents, representatives, and/or customers in line with the above definition.
2. “Fraudulent Transactions” means transactions that are submitted, processed, and/or approved that involve the use of Fraud.
3. “Illegal Activities” are acts or omissions which violate the laws, rules, regulations, and orders of government authorities of the Philippines, foreign countries, International treaties and customs, and International Law.
‍Prevention of Fraud and other Illegal Activity‍
1. The Parties shall exert all necessary efforts to prevent the occurrence of Fraud and Illegal Activity in the performance of its obligations and exercise of rights under the Agreement.
2. In the event that either Party become aware of the occurrence of Fraudulent Transactions, Illegal Activity, Abuse of the Service, or other acts not expressly authorized by the Agreement (collectively, “Unauthorized Services”), such Party shall notify the other Party in writing of the occurrence of the same as soon as possible, which in no case shall exceed three (3) Business Days.
3. In cases wherein, Company suspects the occurrence of Unauthorized Services, may immediately adopt reasonable preventive and mitigating measures.
4. The Partner shall not allow any policy or activity that will expose the Services for use in Fraud or Illegal Activity. Should the Company discover any such activity, it reserves the right to immediately suspend or cease the delivery of Services to the Partner.‍
5. The Partner shall take any such action as the Company may reasonably request to ensure the integrity and security of the Service, Company’s platforms/systems, Company’s business, and to minimize any loss or damage resulting from such Unauthorized Services, including pursuing legal action against the persons perpetrating, committing, and/or contributing to the Fraud or Illegal Activity.
6. The Partner acknowledges and agrees that in order to provide the Services and comply with Applicable Laws, the Company implements strict detection and prevention measures against Fraud and Illegal Activity. The Partner shall adhere to and/or implement measures in order to conform with the Company’s anti-Fraud and Illegal Activity policies and practices, as may be updated from time to time. ‍
Handling of Fraud and/or other Illegal Activity‍
1. If the Company detects any Fraudulent Transaction or Illegal Activity involving the use of the GCash Services by the Partner or a Partner representative, the Company may, at its sole discretion:
  - Immediately suspend and/or deactivate the Partner’s access to any or all of GCash Services without prior notice;
  - Require the Partner to conduct its own investigation and provide an investigation report;
  - Require the Partner to implement remediation of any vulnerability or error found to have been the cause of or facilitated the conduct of such Fraudulent Transaction or Illegal Activity;
  - Request the Partner to provide further information and documents depending on the result/s of Partner’s submitted evidence, investigation result, findings; and/or
  - Terminate the Agreement for material breach.
2. The Company shall investigate and present its findings to the Partner.
3. The Partner may contest the suspension and/or the Company’s findings by providing the Company with the result of its own investigation and supporting evidence within three (3) business days from its receipt of the notice and during business hours (business day ends at 5:00 PM). Should the Partner fail to submit its findings within the period given it shall be deemed to have waived the right to contest the findings of the Company. Based on the investigation conducted, the Company shall provide the final resolution, subject to the Partner’s right to refer the matter to dispute resolution as provided in the Agreement.
4. Failure of the Partner to provide feedback within three (3) business days from its receipt of the notice may lead to permanent revocation of the Partner’s account or access to the Services.
5. The Partner shall cooperate with the Company and exert all necessary efforts and means to recover and return to victims of Fraud and/or Illegal Activity any funds fraudulently obtained, or illegally transacted or transferred.
6. The Partner’s access to the Services shall not be reactivated by the Company, unless the same is agreed to in writing by the Company.
7. Any Illegal Activity detected by the Company shall be reported to the proper law enforcement or regulatory agencies.
‍Implications of Fraud and other Illegal Activity‍
1. In cases of non-delivery of goods and/or services, in which GCash Services are used, Partner shall return the amount paid by the GCash user within five (5) days from receipt of the GCash user’s complaint.
2. The Partner shall be responsible for and shall indemnify, defend, and hold the Company harmless from any and all claims, costs, charges, penalties, demands, losses, liabilities, damages, judgments, or fines, of whatsoever kind arising out of or relating to Fraud, Illegal Activity, and/or Unauthorized Services due to the fault or negligence of the Partner or its employees, agents, or others acting under its authority and/or any member of a Partner Group or its employees, agents, or others acting under its authority.
3. The Company reserves its right to pursue legal action directly against the Partner or any member of the Partner Group’s employees, agents, or others acting under its authority for Fraud and/or Illegal Activity. In such a case, the Partner shall provide the Company with full access to information and employees to the extent necessary for the Company’s legal pursuance.
4. If Fraud or Illegal Activity is committed, participated in, and/or accomplished through the fault or negligence of the Partner or any Partner representatives, the Company shall, at its election be entitled to any of the following remedies, which shall be cumulative:
  - Debit the Partner’s wallet to recover the funds which have been fraudulently obtained or illegally transacted or transferred;
  - Instruct the Partner to return the funds which have been fraudulently obtained or illegally transacted or transferred to the victims of Fraud or Illegal Activity, all within five (5) calendar days from receipt of Company’s instruction;
  - Full recovery of actual and documented costs and expenses incurred by Company on account of Fraud or Illegal Activity;
  - Blacklisting of the individuals and entities involved in the commission of Fraud from accessing GCash Services;
  - Immediate suspension of and/or deactivating their access to any or all of GCash Services;
  - Termination of the Agreement or SOW due to Partner Group’s material breach; and
  - Other available remedies under Applicable Laws.
5. Parties shall strictly implement measures to prevent Fraud and other Illegal Activity in accordance with Applicable Laws and the Company’s recommended policies and best practices to ensure that the GCash Services will not be used for, or will be in aid of, Unauthorized Services. The Partner’s failure to com ply with this clause shall be deemed to be a material breach of the Agreement.
6. In addition to the consequences stipulated in the Agreement and Applicable Laws, transactions related to Fraud, Illegal Activity, as well as the conduct of money laundering, terrorist financing, and/or proliferation financing as defined under Applicable Laws shall be revoked.
7. The foregoing shall be without prejudice to the right of the Company to terminate the Agreement.
8. Parties shall comply with all laws, rules, and regulations applicable to its business and the Agreement, including but not limited to provisions of: (i) Republic Act No. 9160 or the Anti-Money Laundering Act, as amended by Republic Act Nos. 9194, 10167, 10365, 10927, and 11521 and the Bangko Sentral ng Pilipinas (BSP) Circular No. 706, Series of 2011, as amended by BSP Circular Nos. 950 and 102 or the Updated Anti-Money Laundering Rules and Regulations (“AMLA Laws); (ii) Republic Act No. 10168 or The Terrorism Financing Prevention and Suppression Act of 2012; (iii) Republic Act No. 11479 or the Anti-Terrorism Act of 2020; (v) Batas Pambansa Blg. 881 or the Omnibus Election Code of the Philippines; (vi) Act No. 3815 or The Revised Penal Code of the Philippines; and (vii) their respective amendments and implementing guidelines, rules, and regulations. Company reserves its rights and remedies under the Agreement and Applicable Laws for any violation of these laws as determined during audit conducted by Company or its authorized third-party representative, the BSP, and/or authorized Governmental Agencies.

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