The Philippine Amusement and Gaming Corporation (PAGCOR) is actively pursuing measures to remove the Philippines from the Financial Action Task Force (FATF) grey list, addressing concerns regarding anti-money laundering (AML) and counter-terrorism financing (CFT). Alejandro Tengco, Chairman and CEO of PAGCOR, provided insights into the organization’s strategic initiatives during the G2E Asia conference held in Macau.
Current Status and Challenges
Since its placement on the FATF grey list in June 2021, the Philippines has been engaged in intensive efforts to enhance regulatory compliance. The designation stemmed partly from vulnerabilities associated with casino junkets, prompting heightened scrutiny from global regulatory bodies.
Leadership and Strategic Oversight
A pivotal development in PAGCOR’s efforts is the appointment of Atty. Wilma Eisma, who now assumes direct responsibility for overseeing the agency’s AML supervision efforts. Eisma’s elevation to this senior role in April underscores PAGCOR’s intensified focus on addressing identified regulatory deficiencies.
Action Plans and Progress
Central to PAGCOR’s strategy is the submission of regular progress reports to the Asia-Pacific Joint Group (APJG), detailing advancements in action plans. Key areas of focus include the implementation of risk-based supervision and reforms pertaining to casino junket operations. Recent assessments by APJG evaluators have indicated partial compliance (‘partly addressed’) with technical requirements, emphasizing the ongoing imperative for effective implementation.
Impact and Implemented Measures
Tengco highlighted significant outcomes resulting from PAGCOR’s proactive measures. These include a 50% reduction in applications for Internet Gaming Licenses, intensified scrutiny of junket operators, and a substantial increase (137%) in Suspicious Transaction Reports filed by these operators. Such measures are pivotal in demonstrating tangible progress towards regulatory compliance and eventual removal from the FATF grey list.
Governmental Support and National Commitment
Underpinning PAGCOR’s efforts is strong governmental support, exemplified by a directive from President Ferdinand Marcos Jr. Through a Memorandum Circular, 44 government agencies, including PAGCOR, have been mandated to expedite necessary reforms. The national objective is to exit the FATF grey list by the conclusion of 2024, reflecting a unified commitment across governmental entities.
Future Outlook and Continued Efforts
Looking ahead, PAGCOR remains steadfast in its commitment to meeting international standards, ensuring sustained advancements in AML/CFT measures. Ongoing dialogue with APJG and other international stakeholders will be crucial in demonstrating the effectiveness of implemented reforms and reinforcing the integrity of the Philippines’ gaming regulatory framework.
PAGCOR’s concerted efforts towards exiting the FATF grey list embody a comprehensive national endeavor, encompassing rigorous regulatory reforms and strategic oversight. With continued dedication and measurable progress, the Philippines aims to restore international confidence in the integrity of its gaming industry and regulatory practices.