Cambodia and the Philippines remain on the Financial Action Task Force’s (FATF) “gray list.” The Paris-based watchdog continues to express concern about the potential for money laundering, terrorism financing and other crimes in the countries’ casinos.
According to Asia Gaming Brief, the Philippines went back on the list last June. FATF said the country has improved measures to prevent crime, but must demonstrate more effective supervision of designated non-banking financial businesses and professions, which includes casinos. It also needs to demonstrate that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets, more closely monitor financial transactions, and submit more frequent reports to the organization.
The Philippines passed new anti-money laundering legislation in January of last year. At the time, the government said it was confident that the law would help it avoid being placed on the list, which it said would be a further blow to its Covid-battered economy.
Among the amendments was the inclusion of Philippine Offshore Gambling Operators (POGOs) and their service providers as covered persons who need to report transactions in excess of P500,000 (US $104,000).
The Philippines cracked down on money laundering after money stolen in a 2016 robbery from Bangladesh’s Central Bank found its way into Manila’s casinos.
FATF also expressed “significant concern” over the progress of authorities in Cambodia. In a March 5 statement, the body said Cambodia had “failed to complete its action plan, which fully expired in January 2021.
“The FATF strongly urges Cambodia to swiftly demonstrate significant progress in completing its action plan by June 2022 or the FATF will consider next steps, which could include calling on its members and urging all jurisdictions to apply enhanced due diligence to business relations and transactions with Cambodia.”
Its latest report calls on Cambodia to “take urgent action to fully address remaining measures in its action plan by enhancing the dissemination of financial intelligence to law enforcement authorities in connection with high-risk crimes, demonstrating an increase in ML investigations and prosecutions in line with risk, demonstrating an increase in the freezing and confiscation of criminal proceeds, instrumentalities and property of equivalent value, and demonstrating that implementation of Targeted Financial Sanctions is occurring.”
