Philippines Casino Junkets Blamed for Money Laundering Grey Listing

Junket groups serving the Philippines’ many casinos are in the first place to pick for the state remaining on an international heel of nations that aren’t doing plenty to armed combat money laundering. That’s according to the Financial Action Task Force (FATF), an intergovernmental system founded past the Group of Seven (G7) designed to melt off planetary act of terrorism funding past limiting the illicit stream of money.

The FATF placed the Republic of the Philippines on its anti-money laundering grey-headed listing inward 2021. Since then, the country has pledged to do work with the FATF to beef up its banking scheme and financial regulations on businesses that handgrip large amounts of cash, ilk casinos.

Though improvements make been made, FATF officials say more work must follow done for the Philippine Islands to remove its unwanted position on the white-haired list. The planetary organization is led by the United States, United Kingdom, Japan, Germany, Canada, France, and Italy. It says casino junkets, which ship high up rollers from around Asia to casinos inward the Philippines — and often contribute them money to hazard inwards the same amount as their high-priced move around itineraries — present extended money laundering concerns.

The Philippines is rest home to iv integrated gambling casino resorts inward Manila’s Entertainment City, including Resorts World, City of Dreams, Solaire, and Okada. There are also casinos set inward the country’s freeport zones. The Philippine Islands governing to boot operates casinos under the Casino Philippine brand.

Progress, but Work Remains

The FATF said the Philippines’ come along in adhering to international standards regarding money laundering was reviewed since October 2023. The organisation found improvement, but concluded that the state must make additional steps before beingness removed from the gray-haired list.

Since June 2021, when the Philippine Islands made a high-altitude political loyalty to piece of work with the FATF to beef up the effectivity of its Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime, the Republic of the Philippines has taken steps towards improving its AML/CFT regime, including past identifying and investigating terrorist funding cases,” the FAFT wrote.

Among quartet areas where further improvements are needed, the FATF said, is “demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets.”

The Philippines has suit a preferred operating marketplace for junket groups after People's Republic of China forced them out of Macau. The go groups often partner with casinos to run VIP tables inwards private rooms.

Philippines President Ferdinand “Bongbong” Marcos Jr. has made it a point of his presidentship to achieve the nation’s removal from the FAFT grizzly list.

Last fall, Marcos ordered 44 government agencies, including PAGCOR — the Republic of the Philippines Amusement and Gaming Corporation that regulates and operates casinos — to have whatever steps are requisite to improve money laundering safeguards.

FAFT Importance

Countries are placed on the FATF grey-headed lean when they concord to bushel their money laundering and terrorist funding deficiencies. Nations that remain on the white-haired lean risk of exposure existence moved to the organization’s blacklist, which tin can follow with sanctions and more reputational damage.

Remaining on the white-haired heel can buoy often panic attack away other countries from doing business. Inclusion canful lead to a grey-listed country’s financial sphere existence shunned past international companies.

The FAFT seeks to go nations from the grey-haired list within fivesome years.