Pagcor Orders Casinos to Tighten AML Controls

Pagcor has ordered Philippine casino operators to update anti-money laundering and counter-terrorism financing controls after a new sector assessment rated money laundering risk as high.

Good to Know

• Pagcor reviewed casino risks from 2021 to 2024.
• Money laundering risk received a high rating.
• Terrorism financing risk received a medium-high rating.

Pagcor Targets VIP and Cash Risks

Future inspections will check whether licensed operators have applied the latest findings to their compliance systems. Pagcor said weak consideration of the assessment may influence supervisory or enforcement action.

The regulator wants practical controls rather than policies that exist only on paper.

Casinos remain exposed through cash-heavy activity, large transactions, junkets, VIP gaming, electronic gaming, remote channels and cross-border fund transfers. Pagcor found no confirmed terrorism financing case involving a regulated casino during the review period.

Operators must now reassess their own risk profiles and decide whether current procedures remain suitable. Customer due diligence should include beneficial ownership checks, source-of-funds reviews, source-of-wealth reviews, sanctions screening and politically exposed person checks.

Pagcor also wants closer monitoring of rapid redemptions, large buy-ins, limited-play activity and funds transferred across gaming channels. Better customer-level data should help operators identify suspicious patterns and rebuild transaction histories.

VIP customers, junket relationships and other high-value accounts will receive greater attention. Pagcor plans to focus supervision on cash and chip activity, electronic gaming, reporting quality and operators with higher risk exposure.

Terrorism financing must receive separate treatment within internal risk assessments rather than sit under general money laundering controls. Pagcor also called for more training for cage staff, frontline workers, surveillance teams, electronic gaming staff and compliance employees.

Service providers that support licensed casinos should also use the report when preparing group-wide risk assessments and controls.

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