The presence of illegitimate online gaming operations has apparently turned the Philippines into a “money laundering hub,” Senator Sherwin Gatchalian lamented Sunday, after billions of pesos in suspicious transactions entered the country’s financial system.
Gatchalian issued the statement following the Anti-Money Laundering Council’s (AMLC) revelation that billions of pesos from several entities based in China allegedly flowed into the 36 bank accounts under the name of suspended Bamban, Tarlac Mayor Alice Guo or Guo Hua Ping.
The bulk of the funds were deposited from 2019 to 2022, the period when the Philippine Offshore Gaming Operators (POGO) hub—which authorities raided last March—was being constructed. Gatchalian said the AMLC should have reported these transactions sooner.
“As for me, this is one of biggest angles of this criminality—money laundering,” he said.
While the Philippines has a system in place to immediately detect suspicious financial transactions entering several banks, Gatchalian lamented its lack of enforcement and compliance. He said the Senate intends to look into this matter as well in their ongoing investigation.
“I saw the compliance (of these Philippine banks) in their head offices. I saw this as a problem. We should also look into the process,” the senator said. “This is also an eye opener.”
Gatchalian is actively investigating the POGO issue and its alleged ties to Guo, alongside Deputy Minority Leader Risa Hontiveros, who chairs the Senate Committee on Women, Children, Family Relations and Gender Equality.
He said he will file a separate resolution to conduct a Senate hearing to determine whether there was collusion between banks and the POGO players to engage in money laundering activities. “I will personally look at this angle,” Gatchalian said.
Meanwhile Gatchalian called on Mayor Guo to yield to authorities.
“She just should voluntarily surrender,” said Gatchalian.
Teams from the Office of the Senate Sergeant-at-Arms (OSAA) and Philippine National Police which included SWAT operatives failed to locate the mayor in her given address at QJJ farm in Bamban last Saturday.
The contingent forces from the OSAA and the police were armed with an arrest order signed by Senate President Francis Escudero.
The arrest order was issued upon the request of Sen. Risa Hontiveros, chairperson of the Senate committee on women, children, family relations and gender equality, which has been conducting an investigation into the illicit operations in the country of Philippine Offshore Gaming Operators (POGOs).
Guo was ordered arrested “for unduly refusing to appear, despite due notices,” at the Senate hearing on reports human trafficking, torture, serious illegal detention and other serious crimes committed at POGO hubs.
The arresting officers composed of Teams Marilao and Valenzuela did not succeed in getting Guo’s siblings- Shiela, Wesley and Siemen and their parents Jian Zhong Guo and Wen Yi Lin (both reportedlt in China)
They were ordered arrested for their refusal to attend the hearings on their alleged links to POGO crimes.
Arresting officers however got Nancy Gamo, the accountant of the suspended mayor.
As this developed. Presidential Anti Organized Crime Commission (PAOCC) Executive Director Gilbert Cruz expressed confidence that cases against Mayor Guo will prosper, citing the “strong” set of evidence they have obtained.
He told ABNS-CBN that the Commission is eyeing to file forfeiture cases against illegal POGOs which would allow the government to use properties of the illegal companies.
PAOCC is also investigating alleged protectors of illegal POGOs, including those from the government, as well as those leaking information that allowed POGO masterminds and employees to escape government raids.
The Court of Appeals on Friday issued a freeze order on Guo’s assets, which included her 36 bank accounts, a helicopter, 12 motor vehicles and 12 real properties.
The bank accounts of her business partners Zhiyang Huang, Roderick Paul Pujante, Baoying Lin, Hongjiang Yang, Zhengcan Yu, Zhang Ruijin and Rachelle Joan Carreon were covered in the order. All of them will be charged with violation of the Anti-Money Laundering Law.
A total of 18 bank accounts under QJJ Farm, Inc., 12 bank accounts of 3LIN Q Farm, Inc. and four other corporations either owned or tied to the Guo family were also ordered frozen. The freeze order came after a petition made by the AMLC over links to illegal online gaming operations in the country.
Editor’s Note: This is an updated article. Originally posted with the headline: “Gatchalian: Philippines turning into a “money laundering hub” because of POGOs”
