The Paris-based Financial Action Task Force (FATF) has ordered the Philippine gaming industry to demonstrate it is doing all it can to combat money laundering and the financing of terrorism, and to “mitigate risks associated with casino junkets.”
The Philippines were added to FATF’s “grey list” in June, indicating the jurisdiction needs increased monitoring to prevent financial crimes, reported GGRAsia.
In a news release, the FATF acknowledged that since June, the Philippines had “taken steps towards improving its (anti-money laundering) AML and (counter-terrorism financing) CFT regime.” However, it said the industry needs more controls to offset the risks associated with casino junkets.
According to a May 2021 research paper from the International Monetary Fund, landing on the FATF grey list can result in “large and statistically significant reduction in capital inflows.” Countries on the list must submit progress reports to the FATF three times a year. From 2000 until early 2005, the Philippines was on the list of “non-compliant countries and territories.”
In January, the Philippine Senate and House of Representatives approved amendments to the country’s Anti-Money Laundering Act (AMLA), adding Philippine Offshore Gaming Operators (POGOs) and their service providers as “covered persons” under the legislation. One of the stated aims of that move was to avoid getting on the FATF’s grey list.
