Philippine authorities are working hard to stay off the Financial Action Task Force (FATF) grey list after the country celebrated its redesignated last month.
According to The Manila Times, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. stated that advances in digital technology have escalated financial security risks, prompting regulators to intensify efforts to combat money laundering and illicit transactions.
Remolona explained that the situation is essentially an arms race, with regulators needing to keep pace with evolving challenges. He added that a risk assessment is currently underway to ensure the Philippines does not return to the global dirty money watch list.
The country’s removal from the FATF grey list of countries under heightened monitoring was partly due to a ban on Philippine online gaming operators (POGOs), a sector linked to financial crimes. Remolona noted that while the POGO ban wasn’t explicitly required by the FATF, it played a significant role in securing the country’s exit from the grey list.
The regulator also mentioned the 2021 Bangladesh central bank heist, in which hackers funneled $81 million in stolen funds to accounts in the Philippines. This incident drew unwanted attention to the country and led the FATF to demand a high-level commitment from the government to address the issue. The banning of POGOs was seen as a clear demonstration of that commitment.
However, Remolona emphasized that the fight against dirty money is far from over. He pointed out that in the past, the Philippines had been on and off the list, but this time, the country is determined to stay off the grey list.
As part of ongoing efforts, Remolona outlined the need for a national risk assessment to identify potential money laundering and terrorism financing risks across the economy. The next FATF evaluation for the Philippines is scheduled for 2027.
New guidelines aim to curb gambling-linked risks
The commitment of financial authorities is not just reflected in words but also in their proactive efforts to implement a new regulatory framework aimed at curbing money laundering risks and ensuring compliance with global standards.
In a recent development, the central bank of the Philippines introduced draft guidelines for digital marketplace activities, prohibiting banks and electronic money issuers (EMIs) from offering products linked to gambling, such as online casinos and online betting. The proposed rules would allow banks and EMIs to operate digital marketplaces that offer both their own products and third-party services, but would explicitly ban gambling-related offerings.
In response, the Philippine Amusement and Gaming Corporation (PAGCOR) expressed concern that these regulations could impact the country’s thriving electronic gaming sector. PAGCOR Chairman and CEO Alejandro H. Tengco voiced surprise over the proposal, stating that the BSP did not consult with PAGCOR before releasing the draft guidelines. He warned that the new rules could have adverse effects on the online gaming industry.
