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Philippines: Banks must deal only with registered online gaming firms
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has reminded banks and financial institutions to deal only with online gaming businesses registered by authorized government agencies.
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.
The BSP issued Circular Letter 2021–079 after the Anti-Money Laundering Council (AMLC) warned the public to be cautious and to observe appropriate protocols in dealing with MG Universal Link Limited and Inner Strong Limited.
The AMLC revoked the registration of the two uncooperative Philippine Offshore Gaming Operators (POGOs) as the agency ramps up efforts to prevent money launderers and financiers of terrorists from using the Philippines as haven for their operations.
Both MG Universal and Inner Strong are included in the list of POGOs approved by the Philippine Amusement and Gaming Corp. (PAGCOR). As of end August, there are 41 POGOs operating in the Philippines.
Under Republic Act 11521, which revised RA 9160 or the Anti-Money Laundering Act (AMLA) of 2001, POGOs and service providers, as well as real estate brokers and developers were added to the list of covered persons.
As such, the AMLC issued the amended Anti-Money-Laundering/Counter-Terrorism Financing (AML/CTF) Guidelines for Designated Non-Financial Businesses and Professions (DNFBPs) granting the financial intelligence unit to conduct compliance-checking, with at least 24 hours prior notice, to validate the compliance of DNFBPs with the requirements of the AMLA, as well as its implementing rules and regulations, guidelines, and other AMLC issuances.
The Philippines’ sole financial intelligence unit said failure or refusal to cooperate would mean non-compliance and will be subject to such penalties and sanctions as the AMLC and the appropriate government agency may impose under the AMLA.
“In this regard, the AMLC advises the public to be cautious and to observe appropriate protocols in dealing with the identified uncooperative POGOs,” Fonacier said.
Earlier, PAGCOR president and chief executive officer Andrea Domingo said revenues from offshore gaming operations are expected to drop by more than half to P4 billion this year from the average P9 billion as several POGOs left the country and moved to Cambodia, Laos, and Vietnam.
As of Aug. 6, the number of POGOs operating in the country dropped to 36 from at least 60 pre-pandemic, while the number of service providers fell to 133 from a high of 300.
Last year, PAGCOR’s net income fell by more than 82 percent to P1.55 billion from P8.84 billion in 2019 as revenues plunged by over 56 percent to P36 billion from P81.97 billion.
AMLC chairman and Bangko Sentral ng Pilipinas Governor Benjamin Diokno is optimistic the country would be removed from the gray list of Paris-based Financial Action Task Force (FATF) on or before January 2023.
Last June 25, the Philippines was reincluded in the gray list of the FATF after it failed to address the technical deficiencies raised by the Asia Pacific Group on Money Laundering (APG).
Source: https://www.philstar.com/business/2021/10/19/2135043/banks-must-deal-only-registered-online-gaming-firms