Philippine senator files resolution to investigate banks’ role in offshore gaming operators

Senate Resolution 1193 calls for an inquiry into banks’ apparent failure to flag suspicious offshore gaming operator-related transactions.

The Philippines.- Senator Win Gatchalian has filed Senate Resolution 1193, which seeks a probe into the alleged participation of banks in the development and establishment of offshore gaming operators. It also calls for an investigation to aid legislation on the apparent failure of banks to identify suspicious financial activities related to offshore gaming operators tied to criminal activities.

Gatchalian said that recent Senate inquiries had uncovered bank dealings involving companies owned by Guo Hua Ping (Alice Guo, the suspended mayor of Bamban, Tarlac) totalling hundreds of millions of pesos, which facilitated the establishment of an offshore gaming operator in Bamban. According to the senator, the amount involved was far beyond the financial capacity of the companies as indicated in their financial statements. The transactions were not flagged by financial institutions.

“The failure of these banks to report these dubious transactions raises the matter of the effectiveness of their internal controls and procedures for identifying and reporting suspicious transactions,” he said.

He concluded: “The Philippines remains on the Financial Action Task Force’s grey list, and our country needs to enhance its anti-money laundering and counter-terrorism financing activities. The private sector’s support and compliance are crucial to strengthening the country’s AML-CTF regime, including increased adherence with AMF-CTF obligations.”