Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. recently warned that online gambling – particularly illegal operations – pose money laundering threats that could land the Philippines back on the global ‘gray list’.
Remolona, who also chairs the Anti-Money Laundering Council, said the central bank was studying further steps to curb risks tied to online gambling, which he described as carrying “harmful aspects.”
His warning comes less than a year after the country was removed from the Financial Action Task Force list of jurisdictions under increased monitoring, or its gray list.
The Philippines entered the list in June 2021, following revelations that $81 million stolen from the central bank of Bangladesh had been laundered through Manila casinos, exposing deficiencies in the country’s defenses against the flow of illicit funds.
Regulators had tightened oversight since then, finally leading to the country’s removal from the FATF gray list, along with the European Commission’s “high risk” register.
The central bank stressed that aside from money laundering risks, online gambling can also bring financial ruin to individuals.
The BSP has ordered e-wallet companies to remove from their platforms all links to online gambling. The suspension will remain in force until a policy on online gambling payment services is finalized, as it means to put in place tighter payment regulations aimed at curbing online gambling addiction and shielding Filipinos from the financial harm it can cause.
The proposed regulations include better security, daily transaction limits, time-based restrictions, and personal spending caps, to help prevent excessive losses and counter impulsive behavior.
Gambling, whether online or not, has long been a social ill that has threatened the finances of vulnerable individuals and families. Whether it is legalized or not, measures have to be put in place to protect those who are prone to becoming addicted to the vice, most especially the youth, and breadwinners who could be tempted by a few wins, which are usually not enough to make up for more losses that could lead to financial ruin. On a macro level, illegal gambling operations can also harm the country’s standing in the global community, sending us back to the FATF gray list, which means we will have to deal with the consequences all over again.
Let’s not wait until the damage has been done.*
