Key Moments:
- PAGCOR has ordered Philippine casinos to strengthen AML and CTF efforts after its 2021-2024 sector review.
- The assessment identified money laundering as a high risk. Meanwhile, terrorism financing remains a medium-high risk.
- Future inspections will check whether casinos apply risk assessments in their daily compliance procedures.
Regulatory Push for Stronger AML Defenses
PAGCOR has instructed licensed Philippine casinos to increase efforts against money laundering and terrorism financing. The directive follows a detailed review from 2021 to 2024. The assessment found that casinos remain highly exposed to money laundering risks. In addition, the regulator identified a medium-high threat from terrorism financing.
Furthermore, PAGCOR wants operators to move beyond basic compliance steps. The regulator will examine whether casinos use formal risk assessments in their daily operations. These reviews will focus on how firms detect and report suspicious activity.
Key Areas of Concern Highlighted
PAGCOR identified several areas that require closer attention. These include large cash transactions, junket operations, VIP gaming, electronic gaming, remote gaming, and cross-border fund transfers.
However, the review found no confirmed terrorism financing cases involving licensed casinos. Despite this, PAGCOR warned that the threat remains important. Therefore, operators must assess terrorism financing risks separately from general money laundering controls. This approach creates a more detailed risk management process across the industry.
Expanded Compliance and Monitoring Expectations
PAGCOR now expects casinos to review their internal risk frameworks and improve existing controls. In addition, operators must strengthen customer due diligence procedures. These steps include identifying beneficial owners, checking sources of funds and wealth, screening sanctions lists, and monitoring politically exposed persons.
Meanwhile, casinos must continue monitoring customers after account approval. Operators should pay closer attention to rapid chip redemptions, large deposits with limited play, and transactions across multiple gaming platforms. Better customer data collection will also help investigators track transaction histories when needed.
VIP and Junket Sectors Face Tighter Oversight
High-value customers and junket businesses will receive greater regulatory attention. Junkets remain a key concern because they can make it harder to track the source and movement of large player funds.
As a result, inspectors will review how casinos monitor cash activity, chip transfers, electronic gaming, and reporting systems. Furthermore, operators with higher-risk business models must address identified weaknesses. Otherwise, regulators may consider these failures during future enforcement actions.
| Key Risk Areas | PAGCOR Assessment |
|---|---|
| Money Laundering | High |
| Terrorism Financing | Medium-High |
| Junket/VIP Gaming | Requires focused scrutiny |
| Cash Transactions | Major concern |
| Cross-Border Transfers | Significant vulnerability |
- Author
Daniel Williams
