A high-ranking Philippines lawmaker has assured global regulators that the country will expand new anti-money laundering measures to bring casinos under their regulatory scope.
“Our first act in the coming 16th Congress will be to introduce a fourth set of amendments to [the law] to include casinos, which was taken out from the Senate version at the bicameral conference level,” Sen. Teofisto Guingona III told the Financial Action Task Force.
The FATF, based in Paris, has threatened sanctions against the Philippines unless it takes more serious steps to prevent the funneling of cash proceeds from suspected criminal activity and block funding for terrorism. The Philippines so far has evaded an FATF blacklisting, which would make it difficult for millions of Filipinos working abroad to send money home and harder for Filipinos to invest abroad. As it stands, money sent home by citizens overseas is subject to enhanced scrutiny in many countries where the remittances are processed.
Lawmakers left casinos and Internet gaming out of the recently passed reforms expanding the list of institutions that must report cash transactions to authorities. Mr Guingona acknowledged at the time that this was done at the request of certain lawmakers and the Philippine Amusement and Gaming Corporation, the government regulator. “[They] excluded casinos from coverage because [House members] warned it would deter investors,” he said. “That’s the No. 1 reason—and No. 2, PAGCOR.”
Senate President Juan Ponce Enrile conceded the amendments fell short of full compliance. “We have produced enough compliance with the requirements of the FATF, but we have to go slowly since some other countries have different circumstances.”
Mr Guingona, who steered the amendments through the Senate, said he is optimistic the FATF will grant the country a clean bill of health once it conducts an on-site visit to confirm their implementation.
The reforms were enacted earlier this month, just weeks ahead of the scheduled opening of the first of four large-scale casinos planned for the new Entertainment City resort district in Manila.
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