The Anti-Money Laundering Council is expanding its team to watch dirty money entering the country through casinos and online gaming companies, after President Rodrigo Duterte signed a law expanding the coverage of the law against money laundering.
Bangko Sentral ng Pilipinas Governor and AMLC chairman Nestor Espenilla Jr. said the AMLC Secretariat was already in the process of building up its manpower complement in line with the expanded scope of Republic Act No. 10927 which placed casino operations under the anti-money laundering law.
Espenilla said the inclusion of casino operations under the coverage of the law was a very significant move to bar the entry of dirty money.
Espenilla welcomed President Rodrigo Duterte’s signing of RA 10927 , which amended RA 9160 also known as Anti-Money Laundering Act of 2001.
“This is a very welcome development. It plugs a critical gap in our legal framework. It will significantly strengthen our ability to prevent the entry of illicit money into our economy,” Espenilla said in a statement.
“The IRR [implementing rules and regulations] for the new Casino Law will be fast-tracked and should be in place by yearend at the latest. The IRR will be developed in coordination with casino regulators, notably PAGCOR [Philippine Amusements and Gaming Corp.],” Espenilla said.
Under the new law, casinos including Internet and ship-based casinos are now considered “covered persons” under the AMLA.
Any single cash transaction in excess of P5 million or equivalent in any other currency is considered “covered transaction” that must be reported to the AMLC. The agency also is mandated to monitor suspicious financial transactions.
The law authorized the Court of Appeals to issue a 20-day freeze order on any monetary instrument or property suspected to be related to any unlawful activity.
The Philippines has already become an Asian gambling hub, with data from state-run Philippine Amusement and Gaming Corp. showing that local casinos raked in P149 billion in gross gaming revenue in 2016.
Espenilla earlier said the expansion of the anti-money laundering law and relaxation of the deposit secrecy law would be some of his priorities under his term as BSP governor.
He said the expansion of the anti-money laundering law, including casinos, was one of the biggest challenges in his tenure.
He said expanding the anti-money laundering law would result in a more secure financial system that eventually would end up in protecting consumers. “It is BSP’s job to make sure that that the banking system is secure and prevent the entry of illegal funds in the financial system,” Espenilla said.
Cyber thieves stole $81-million from the account of Bank of Bangladesh in Federal Reserve in New York in February 2016. The dirty money entered the local financial system through a Makati branch of Rizal Commercial Banking Corp. and eventually through local casinos.