AMLC scrutinizes online gambling for dirty money risks

MANILA, Philippines — Online gambling has been placed under scrutiny by authorities to find potential “risks” and vulnerabilities that financial criminals could exploit to facilitate the illicit flow of funds.

In a text message to the Inquirer, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr., who also chairs the Anti-Money Laundering Council (AMLC), said the risk assessment covering various forms of online gambling would ensure that the country remains on guard against money laundering and terrorism financing.

This, as Remolona noted how the banning of Philippine offshore gaming operators or Pogos “certainly helped us” get out of the global dirty money “grey list” of the Financial Action Task Force (FATF).

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“Beyond that, we’re doing a risk assessment that will include other forms of online gambling,” Remolona said.

FATF exit

At the end of its meeting last February, Paris-based FATF, the global money laundering and terrorist financing watchdog, finally removed the Philippines from its list of jurisdictions under increased monitoring—the only country to be excluded in the latest round of assessment.

The decision wrapped up more than three years of the Philippines’ efforts to remedy all 18 deficiencies in the measures against antimoney laundering (AML) and counterterrorism financing (CTF).

Remolona had said the next big threat to the country’s defenses against dirty money could come from digital technology, adding that authorities were in the middle of an “arms race” with bad actors.

A spokesperson from the FATF told the Inquirer that the Philippines “should continue to work with the FATF-Style Regional Body ... to sustain its improvements in its AML/CFT system.”

Despite the Pogo ban, Choon Hong Chua, head of the financial crime practice group for Asia-Pacific and Middle East at Moody’s, said the risks associated with online gambling “remain” as the sector experiences “rapid” growth.

Latest figures from the Philippine Gaming and Amusement Corp. (Pagcor) — the gambling regulator — showed the entire local gaming industry’s gross revenues grew by 24.81 percent to P410.5 billion in 2024.

Of that figure, receipts from the electronic gaming sector had surged by 309.20 percent to P135.7 billion, with Pagcor expecting this segment to “match” the revenues of brick-and-mortar casinos “in the next two to three years.”

Pogo residue

That dramatic growth caught the attention of some lawmakers, including Senate President Francis Escudero. Last month, Escudero called for a review of online gambling operations that cater to punters onshore, citing its potential “ill effects” on the lives of Filipinos.

Beyond that, Moody’s Chua told the Inquirer that the government must continue its crackdown on remaining Pogos that set up shadow or underground operations, as “regulation alone may not be sufficient.”

“This is where public-private partnerships can help enhance the efficacy of tougher regulation,” he said.

“Continuous monitoring and enforcement of AML/CTF measures are crucial to safeguarding the integrity of the financial system and maintaining the country’s progress in combating financial crimes,” he added.

(2025/04/21-02:11)