The Philippine Amusement and Gaming Corporation (PAGCOR) has instructed all licensed casino operators to reassess and strengthen their anti-money laundering (AML) programs after a fresh risk assessment concluded that the country’s casino industry remains highly vulnerable to financial crime. The move reinforces the regulator’s ongoing effort to align the Philippines with international AML standards while reducing opportunities for money laundering and terrorism financing within the gaming sector.
The directive follows years of regulatory reforms, yet officials maintain that casinos continue to present elevated risks because of the large volumes of cash transactions, cross-border gaming activity, and the continued growth of online gambling. PAGCOR’s latest order signals that compliance expectations are increasing rather than easing, with operators expected to demonstrate that their AML controls are actively monitored, tested, and enforced.
PAGCOR Responds to Persistent AML Risks
According to news sources, PAGCOR issued the directive after a recent assessment determined that both land-based and online casinos continue to present a high risk for money laundering despite significant improvements in regulatory oversight over the past several years.
The regulator’s Anti-Money Laundering Supervision and Enforcement Department has repeatedly emphasized that casino licensees must remain vigilant by monitoring customer activity, applying enhanced due diligence to higher-risk transactions, and maintaining effective reporting procedures. PAGCOR has also reminded operators that online gaming transactions should only be conducted through entities that are properly licensed and regulated by the agency.
Rather than treating AML compliance as a periodic exercise, PAGCOR continues to promote a risk-based supervisory model that includes policy reviews, routine inspections, off-site examinations, and ongoing compliance monitoring. The objective is to identify weaknesses before they can be exploited by criminal organizations and to ensure operators maintain effective safeguards throughout their businesses.
What PAGCOR Expects From Licensed Operators
Under current PH gambling laws, casino operators must maintain effective policies, procedures, and internal systems that comply with the Anti-Money Laundering Act and related regulations. Every licensed operator is expected to designate an AML compliance officer responsible for coordinating employee training, implementing internal controls, and ensuring reporting obligations are met.
The regulator also expects operators to:
- Conduct ongoing customer due diligence and update customer profiles when necessary.
- Monitor transactions for unusual or suspicious patterns.
- File Suspicious Transaction Reports (STRs) and other required reports with the appropriate authorities.
- Regularly review and test internal AML controls.
- Maintain detailed documentation demonstrating compliance efforts.
Failure to comply with these obligations can result in administrative penalties, sanctions, or other enforcement actions depending on the severity of the deficiencies identified during regulatory examinations.
What This Means for Philippine Casino Operators
For casino operators, PAGCOR’s latest directive is likely to trigger another round of internal compliance reviews across the industry. Many licensees will be expected to revisit customer onboarding procedures, refresh enterprise-wide risk assessments, evaluate transaction monitoring systems, strengthen employee training, and ensure escalation procedures for suspicious activity remain effective.
More broadly, the announcement highlights that AML compliance has become one of the defining pillars of gaming regulation in the Philippines. As regulators continue distinguishing licensed operators from unauthorized gambling businesses, strong compliance programs are increasingly viewed as a competitive advantage as well as a legal obligation.
The continued “high risk” designation makes one point clear: although significant progress has been made, Philippine regulators and international watchdogs believe further improvements are still needed. Operators that invest in stronger compliance infrastructure and proactive risk management will likely be better positioned as PAGCOR continues to increase oversight across both land-based and online gaming sectors.
How Offshore Casinos Fight Money Laundering
Licensed offshore sites found at LegalCasinosPhilippines.com are also expected to maintain anti-money laundering (AML) programs, although the specific requirements vary depending on the jurisdiction that regulates the operator. Reputable gaming authorities, including those in Curaçao, Anjouan, and Kahnawake, generally require licensed casinos to implement customer verification procedures, monitor financial transactions, maintain records, and report suspicious activity to the appropriate financial intelligence authorities.
Most established offshore casinos use a combination of Know Your Customer (KYC) checks and transaction monitoring to reduce financial crime. New customers may be asked to verify their identity by submitting government-issued identification, proof of address, and, in some cases, evidence of the source of funds before large withdrawals are approved.
Operators also use automated systems to identify unusual betting patterns, rapid movement of funds, multiple linked accounts, or transactions that exceed predetermined risk thresholds. Accounts that trigger these alerts can be temporarily restricted while compliance teams conduct additional reviews.