What specific law targets large casino transactions in the Philippines?

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A New Law Targets Large Casino Transactions in the Philippines

A recently signed law in the Philippines now mandates that casinos report significant transactions to the central bank's Anti-Money Laundering Council. This legislative update aims to strengthen the country's defences against money laundering, particularly following an incident where a substantial sum was funnelled through gambling establishments. The measure empowers the council to freeze suspected illicit funds and ultimately forfeit criminal proceeds to the state.
Expansion of Monitored Institutions

The gaming sector has been officially added to the list of institutions subject to monitoring under anti-money laundering regulations. This means that casinos are now required to report all transactions exceeding five million pesos, equivalent to approximately RM1.22 million, to the central bank's Anti-Money Laundering Council. This inclusion marks a significant expansion of the original anti-money laundering framework established in 2001.
Enhanced Powers for Fund Freezing and Forfeiture

Under the new law, the Anti-Money Laundering Council is granted the authority to seek court orders to freeze funds for up to six months if there is suspicion that they are connected to unlawful activities. Furthermore, any funds that are proven in a court trial to be linked to criminal actions will be forfeited to the Philippine state, reinforcing the penalties for using the financial system for illicit purposes.
Context of Anti-Money Laundering Efforts

The Philippines first enacted an anti-money laundering law in 2001, primarily to avoid being blacklisted by the Financial Action Task Force. Initially, this law covered only traditional financial institutions such as banks, insurance companies, and money remittance firms. The Financial Action Task Force has consistently advocated for Manila to broaden the scope of reporting institutions, aligning with international best practices to combat financial crime.
Response to Previous Incidents

This legislative action follows a notable incident where hackers stole US$81 million from a US account belonging to the Bangladesh central bank. A significant portion of these stolen funds was funnelled through a Philippine bank and subsequently through several casinos in February 2016. The emergence of the Philippines as a major gaming hub, with substantial revenue and ongoing development in areas like Entertainment City, underscored the need to enhance regulatory oversight in the sector.

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What specific law targets large casino transactions in the Philippines?

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