State-run Philippine Amusement and Gaming Corp. said Wednesday it started investigating reports that as much as $100 million of illicit funds were allegedly remitted to three casinos’ bank accounts.
“Pagcor expects the casinos to submit their comments on the allegation as an initial step in the investigation within this week,” the agency said in a statement.
“As a matter of regulation, Pagcor requires casinos to employ strict internal control policies on funds movements and issuances of playing chips. In addition, casinos implement ‘know your customer’ protocols particularly with regard to high value patrons,” it said.
Securities and Exchange Commission chairman Teresita Herbosa warned the country risked returning to the list of nations that weren’t doing enough to fight money laundering if laws were not strengthened to include sectors like casinos among institutions required to report suspicious transactions.
“We already have warnings” from the Financial Action Task Force, Herbosa told reporters Tuesday night. “If the reports coming out were true, it really shows the consequences. I don’t think they have any reason now to oppose the bill that casinos should be covered.”
Herbosa is a member of the country’s Anti-Money Laundering Council, which unsuccessfully lobbied lawmakers to include casinos in a 2012 amendment that added terrorism as a predicate crime for laundering.
Pagcor said in a statement it appeared that “none of the casinos mentioned in the news report have accounts with the bank through which the funds in question first entered the Philippine financial system.”
“It is worth noting that all bank remittances into casino bank accounts regardless of amount are subjected to scrutiny as to the identity of the remitting party and the purpose of the remittance,” it said.
AMLC said in a statement its policy was to maintain confidentiality in any and all of its on-going
investigations. “Rest assured that the AMLC is fully committed to combating money laundering and helping preserve the integrity of the financial system pursuant to its legal mandate,” it said.
A banker said a single incident could not reflect the state of anti-money laundering efforts in the country. “ I am not sure anyone could make a judgment on the state of AML [anti-money laundering] in the country based on a single incident. We don’t even know the details,” EastWest Banking Corp. president and chief executive Antonio Moncupa Jr. said in a text message.
“What I know is the regulators and the banks continue to work hard and are making significant progress to make the banking system avoid money launderers,” Moncupa said.
RCBC president and chief executive Lorenzo Tan, who is also the Bankers Association of the Philippines president, did not respond when sought for comments. His bank was being linked to the alleged money laundering. With Julito G. Rada, Bloomberg