Pagcor requires casinos to tighten its internal controls

The Philippine Amusement and Gaming Corp issued a warning intended to remind casino operators to optimise its policies on funds movements and issuances of playing chips.

The Philippines.- Pagcor, the State-regulator Philippine Amusement and Gaming Corp issued a reminder to casino operators to implement tighter internal control policies on funds movements and issuances of playing chips.

After the controversies surrounding the alleged US$100 million money laundering in the Philippines, Pagcor announced that it is conducting its own probe on claims that three local casinos were used for money laundering activities. The investigation started last February 29 and the regulator expects the casinos to submit their comments on the allegation within this week and, in addition, operators should implement “know your customer” protocols focusing in high value patrons. Furthermore, the financial transactions records of local casinos must be available for scrutiny by Pagcor on demand, as well as the internal control systems and procedures generally followed by the casino industry in many gaming jurisdictions throughout the world.

“None of the casinos mentioned in the news report have accounts with the bank through which the funds in question first entered the Philippine financial system,” Pagcor stated. “It is worth noting that all bank remittances into casino bank accounts regardless of amount are subjected to scrutiny as to the identity of the remitting party and the purpose of the remittance.”

Pagcor declared that upon the request of the Anti-Money Laundering Council, in early 2013, the gaming regulator has acted as one of AMLC’s resources in the course of its review of the Anti-Money Laundering Law. “While it is doing its own inquiry, Pagcor believes that AMLC is currently in a better position to deal with the issue as the casino industry also relies on the AMLC safeguards within the Philippine banking system,” Pagcor added.