POGOs face AMLC probe over compliance issues

A study by the Anti-Money Laundering Council (AMLC) reveals that Philippine offshore gaming operators (POGOs) lack compliance with anti-money laundering and counter-terrorism financing (AML/CTF) rules.

The AMLC study recommends a thorough review of how regulators supervise POGOs and internet-based casinos, including reevaluating POGO licenses and service provider (SP) accreditations.

The casino sector was already identified as a high-risk area for money laundering in a previous national assessment.

The study found a low level of AML/CTF awareness and regulation, with SPs posing a greater threat than POGOs themselves due to jurisdictional issues and their accredited rather than licensed status.

The threat of money laundering and fraudulent activities within the sector is growing, evidenced by an increase in investigations and 63 casino-kidnapping incidents between 2017 and 2019.

A significant number of unregulated or unsupervised SPs are vulnerable to exploitation by criminal organizations.

The low level of beneficial ownership identification, due to unregulated gaming accounts, increases the risk of accounts being used for money laundering and fraudulent activities.

The study highlights the absence of AML/CTF compliance units within POGOs and the non-existence of POGO offices and representatives at their registered addresses, although service providers are operating at their registered addresses.