New casino rules from the Philippines Anti-Money Laundering Council will require casinos to maintain a system for verify the “true identity” of gamblers.
The rules are part of the council’s Casino Implementing Rules and Regulations of Republic Act and will go into effect November 4. They require casinos to “maintain a system of verifying the true identity of their customers based on reliable, independent sources, documents, data, or information” when opening an account or redeeming an unspecified amount of chips or tokens, according to CDC gaming reports.
The casinos will need to require a customer’s name, date and place of birth, current address, permanent address, contact information, nationality, proof of ID, employment details and source of funds. For corporate customers, casinos will be required to maintain a system of verifying their legal existence and organizational structure, as well as the authority and identification of anyone acting on the company’s behalf, the report said.
The rules address “proxy betting”’ which has been prevalent in the country’s casinos in the past.
“Where an account is opened or a casino transaction is conducted by any person in behalf of another, the casinos shall establish and record the true and full identity and existence of both the account holder or transactor and the beneficial owner or person on whose behalf the casino transaction is being conducted,” the rules read.
Casinos will also have to carry out a risk assessment on all customers to determine the casino’s Customer Due Diligence procedures. High-risk customers require a greater level of attention.
Casinos should set risk classifications by examining source of funds, occupation, residence or origin, status as politically exposed persons, any adverse media exposure or their appearance on government, international and industry watch lists. The types of services, products, and transactions sought by the customer and the presence of linked accounts are also relevant assessment criteria, the report said.
The rules prohibit casinos from engaging in any cash conversion without the money being used in gaming. Casinos are also not allowed to receive cash if its origin cannot be ascertained within a week.
However, the new rules set a relatively high limit for automatic reporting of transactions. The level is PHP5 million or about $97,000. Macau, for example, has a threshold of about $62,000 while in the U.S. the threshold is only $3,000.
Philippines casinos also must regularly update customer details and keep all identification and transaction records for at least five years. The law covers all gambling operators including land-based, online and shipboard casinos as well as junket operators as ‘covered persons’ under the country’s Anti-Money Laundering Act.
