The Bangko Sentral ng Pilipinas (BSP) has issued new requirements for banks and financial institutions to strengthen anti-money laundering controls over casino junket operators. The decision follows a thematic review of universal, commercial and savings banks serving the sector.
Junket operators arrange gaming services for high rollers: casino bookings, credit, logistics. BSP now requires banks to tighten KYC procedures, transaction monitoring and suspicious activity reporting.
The review identified several vulnerabilities. The main one is the prevalence of cash and cheque settlements, which make it harder to trace illicit flows. The regulator recorded frequent transfers between casinos, junket operators, financiers, players and payment services. Additional risks include cross-border remittances, opaque sources of player funds, use of intermediaries and layered transactions.
Among the red flags BSP cited: transactions inconsistent with a customer's declared income sources, chip purchases with small-denomination notes and minimal gaming activity, large unexplained cash and cheque deposits, and failure to meet reporting obligations set out in junket agreements. Banks also found cases where individuals initially presented as players or financiers turned out to be junket operators or beneficial owners of junket firms.
Most banks already classify junket operators as high-risk clients with enhanced due diligence, but BSP is calling for more detailed policies covering onboarding, ownership structure, business activity and transaction patterns. The regulator noted a lack of official information on registered and delisted operators and their beneficial owners. BSP stressed the need for closer data sharing between the central bank, gaming regulator PAGCOR and financial institutions.
