The Bangko Sentral ng Pilipinas (BSP) has told banks and other supervised financial institutions to tighten scrutiny of casino junket operators, citing heightened risks of money laundering and other illicit financial activities.
The central bank issued guidance identifying red flags linked to casino junket operations, including unusual cash movements, complex corporate ownership structures and layered transactions.
Casino junket operators arrange services for high-value gamblers, including travel, credit and gaming room bookings.
“Financial transactions linked to CJOs can pose elevated money laundering risks,” BSP Deputy Governor Lyn Javier said. “We identify the best practices and red flags BSFIs need to watch out for to be strong partners in our shared goal of curtailing crime and safeguarding the integrity of the financial system.”
The BSP said financial institutions should strengthen controls against money laundering, terrorism financing and proliferation financing when dealing with junket operators.
Its guidance calls for stronger board and senior management oversight, customer identification and acceptance procedures, transaction monitoring, suspicious transaction reporting, internal assessments and staff training.
The central bank also recommended enhanced due diligence for high-risk clients, automated transaction monitoring, client link analysis and independent verification with regulatory agencies.
It said information sharing among financial institutions and regulators, particularly the BSP and the Philippine Amusement and Gaming Corp., was critical to managing risks associated with casino junket operations.
