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Philippines: BSP warns banks vs illegal online gambling
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has warned local banks as well as financial institutions including remittance transfer companies, virtual currency exchanges, electronic money issuers and operators of payment systems, to avoid being used by unlicensed online gaming or betting operators as conduits of funds for their illegal activities.
BSP Deputy Governor Chuchi Fonacier said BSP-supervised financial institutions (BSFIs) should strictly observe the requirements on customer due diligence, ongoing monitoring, and reporting of suspicious transactions as provided under the manuals of regulations for banks and for non-bank financial institutions.
“BSFIs are also reminded to, among others, deal only with gambling and/or online gaming businesses that are authorized/licensed by or registered with the appropriate government agency duly empowered by law or its charter to license or authorize entities or businesses to engage in such activities, and file suspicious transaction reports as warranted,” Fonacier said.
Fonacier issued Circular Letter 2021–012 reminding banks about sound risk management practices when dealing with customers engaged in gambling and online gaming business as stated in Memorandum 2018-002.
State-run Philippine Amusement and Gaming Corp. (PAGCOR) has sought the assistance of the BSP and the Anti-Money Laundering Council (AMLC) to conduct an investigation of banks, remittance services, and payment solutions used as fund conduits for illegal operations as part of efforts to further strengthen the fight against unauthorized gambling activities.
While illegal gambling per se is not among the predicate crimes of money laundering, PAGCOR said frauds and swindling are.
The agency has issued a number of public warnings against illegal online gambling being offered by unscrupulous individuals and groups and promoted through social media platforms.
PAGCOR has warned the public not to patronize these illegal gambling activities due to the risk of being scammed and falling prey to identity theft and credit card fraud.
The advisories also emphasized that no person or organization other than those licensed by PAGCOR and other government agencies may operate gambling in the Philippines.
The agency said it is illegal for any person or organization without a license to, in any manner, directly or indirectly take part in any unauthorized gambling activities, including online, internet, or remote gambling.
Source: https://www.philstar.com/business/2021/02/10/2076538/bsp-warns-banks-vs-illegal-online-gambling