MANILA, Philippines — The Philippine government will not allow foreigners, particularly Chinese traders involved in offshore gambling, to use the country as a haven for money laundering activities, presidential spokesman Salvador Panelo said yesterday.
Panelo said the government has a working mechanism on money laundering activities that would automatically come into play.
Panelo was referring to Republic Act 10927, also known as the Act Designating Casinos as Covered Persons under Republic Act 9160, otherwise known as the Anti-Money Laundering Act of 2001.
President Duterte signed the measure on July 14, 2017, which has counted casinos – including online and ship-based casinos with respect to their casino cash transactions related to gaming operations—as covered persons under the AMLA.
“The Chinese are concerned on what was illegal in their country, it comes in here. And then, the clients that come here in POGO (Philippine offshore gaming operators) are all Chinese,” Panelo said.
Malacañang has given assurance that the government will not allow the abuse and discrimination of Chinese workers who were illegally recruited to work in POGO units, which is under the Philippine Amusement and Gaming Corp. (Pagcor).
Chinese embassy in Manila expressed concern over these hubs, saying they may infringe on the basic legal rights of Chinese citizens.
In a recent statement against the targeting of Chinese as clients in POGO, the Chinese embassy said it has started a crackdown on offshore and cross-border gambling operations.
China’s Ministry of Public Security said it has taken many actions and will carry out more special operations aimed at preventing and combating the cross-border gambling.
China will also crack down on “underground banks” and online payment platforms that provide a financial settlement for cross-border gambling and other crimes, and wipe out domestic network operators and companies that provide technical support for such crimes.
Under Philippine laws, internet-based casinos refer to those facilities that allow persons to participate by using the internet, telephone, television, radio or any other kind of technology for facilitating communication.
It also set the threshold amount for coverage at a minimum of P5 million, or its equivalent in any foreign currency, per casino transaction. The threshold of other covered transactions under RA 9160, as amended, is over P500,000.
National security threat
While POGOs have been allowed, the mushrooming of these gambling entities for Chinese nationals should not be located anywhere near the Philippine government’s national security establishments, Rep. Jericho Nograles of party-list Puwersa ng Bayaning Atleta maintained.
Nograles told CNN Philippines of reports that there are POGOs near Camps Aguinaldo and Crame in Quezon City, in Resorts World near Villamor Air Base and another one in Subic area.
“That puts into question again, why there?” Nograles said. – With Delon Porcalla, Mary Grace Padin