The Philippine Anti-Money Laundering Council (AMLC) recently announced that there has been a noticeable decline in money laundering activities since the complete ban on Philippine Offshore Gaming Operators (POGO). In an official email, the AMLC noted: "Given that the POGO industry is highly susceptible to money laundering activities, the comprehensive prohibition is expected to significantly reduce the opportunities for money laundering within the gaming sector."
As early as March 2020, the AMLC, through a risk assessment, pointed out that the POGO business, as an online casino format, "is highly vulnerable to money laundering activities." Therefore, with the Philippine government officially issuing the ban, prohibiting all POGO operations, the AMLC believes that the risk of money laundering in the gaming field will be effectively alleviated.
This ban was explicitly proposed by Philippine President Ferdinand Marcos in his recent State of the Nation Address, aimed at combating illegal activities closely associated with POGO businesses, including money laundering, prostitution, and human trafficking. According to regulations, entertainment and gaming companies within the Philippines are required to completely shut down all POGO facilities by the end of the year.
To further reduce the risk of money laundering, the AMLC calls on gaming regulatory authorities to strengthen anti-money laundering and anti-terrorist financing controls, and to continue implementing strict risk management measures, including conducting compliance checks within the gaming industry and ensuring the fulfillment of anti-money laundering obligations. The Philippine government also stated that it will spare no effort in addressing all remaining action items, with the goal of being removed from the FATF "grey list" within the next year.
The Governor of the Central Bank of the Philippines, Benjamin Diokno, previously optimistically predicted that the Philippines is expected to successfully exit the "grey list" next year. Additionally, a professor of law and business at De La Salle University also highly praised the measures to crack down on online gaming companies, noting that it would have a "significant positive impact" on investor sentiment and emphasized that the long-term dangers posed by illegal activities should not be overlooked for short-term economic benefits.
Furthermore, the Makati Business Club and the Department of Finance also pointed out that online gaming companies have a relatively limited actual contribution to the Philippine economy, and their reputational risks could lead to substantial economic losses for the government, including potential investment outflows and a decline in tourism revenue.
