Philippine Central Bank issues new guidance on money laundering risks in casino junket operations
The BSP has called on financial institutions to strengthen AML and counter-terrorism financing measures for customers linked to casino junkets.
The Philippines.- The Bangko Sentral ng Pilipinas (BSP) has issued new guidance aimed at strengthening safeguards against money laundering and other illicit activities associated with casino junket operations. Its new Risk Management Practices for Customers Engaged in Casino Junket Operations outline a series of measures for BSP-Supervised Financial Institutions (BSFIs).
The central bank noted that financial transactions involving casino junkets may present elevated money laundering risks and identified several warning signs for financial institutions to monitor, including unusual cash movements, complex ownership structures among corporate clients and layered transactions.
The document recommends measures to strengthen risk management in five areas: board and senior management oversight; (2) money laundering and terrorism financing prevention programme (MTPP); client acceptance and identification; ongoing monitoring and suspicious transaction reporting; and self-assessment and training.
It urged BSFIs to ensure enhanced due diligence for high-risk clients, automated transaction monitoring systems, client link analysis, independent verification with regulatory agencies and participation in information-sharing initiatives.
Lyn I. Javier, BSP deputy governor, said: “Financial transactions linked to CJOs can pose elevated money laundering risks. We identify the best practices and red flags BSFIs need to watch out for to be strong partners in our shared goal of curtailing crime and safeguarding the integrity of the financial system.”
The central bank also underscored the importance of cooperation between supervisory authorities and the private sector, saying that information sharing among the BSP, the Philippine Amusement and Gaming Corporation (PAGCOR), and supervised financial institutions was critical to effective risk management.
