Anti-Money Laundering Council(AMLCS)

April 12, 2021 Dear Ms. Clar, Thank you for your request dated 23 March 2021 under Executive Order No. 2 (S. 2016) on Freedom of Information in the Executive Branch. Your request is: I, Nichole C. Clar, on behalf of my team, is a 3rd-year Accountancy student from the College of Business and Entrepreneurial Technology of Rizal Technological University. We humbly request for your assistance with regard to the specific guidelines for POGO compliance in the Philippines, which is a relevant information related to our study. Rest assured that the data gathered will be for research purposes only and will be kept with utmost discretion and confidentiality. In this regard, we have prepared as set of guides and resources to assist you in your research. 1. What are the protocols and requirements in registering a customer or client? a. If this refers to the registration of a POGO, the PAGCOR, as the Supervising Agency can answer this. b. If this refers to the registration of the player of a POGO, this depends on the specific requirement/s of the POGO licensee. However, each POGO licensee registered with the Philippine Amusement and Gaming Corporation (PAGCOR), is required to comply with the Anti-Money Laundering Act, as amended, the Casino Implementing Rules and Regulations (CIRR), and other regulatory issuances of the AMLC and the PAGCOR. The POGO should undertake, among others, Know-Your Customer (KYC) procedures and should perform Customer Due Diligence (CDD) on its clients/players. Guidelines for KYC and CDD procedures are prescribed in the CIRR (which can be downloaded from the AMLC website), and the Customer Due Diligence Guidelines for Offshore Gaming January 2019 version 1.0 (which can be downloaded from the PAGCOR website. 2. How should casino cash transactions take place? (money inflows and outflows). What particular procedures should be followed by POGO? • Medium of transactions allowed – this depends on the business model of each POGO. • Is it still considered suspicious when cash does not exceed 5,000,000, but almost reaches the said amount? – For proper guidance, please refer to the AMLA, the CIRR for the definition of Suspicious Transactions. • Do you have regulations in casino cash transactions? – Please refer to the Casino Implementing Rules and Regulations and PAGCOR regulations. All of these regulations can be downloaded from each agency’s website. • Who are those that are allowed to work in POGO? Section 3. Prohibited acts of Philippine Offshore Gaming Operators a. The operator shall not allow the following persons to access its games thru its website: 1. Filipino citizens, wherever located and foreign nationals while within the territorial jurisdiction of the Philippines; 2. Players below twenty-one (21) years old; 3. Eligible players who have not registered and established a gaming account; b. The operator shall not allow its gaming website to be accessed within the territory of the Philippines or in territories where online gaming is prohibited; c. The operator shall not allow placing of bets and paying of winnings to occur within the territorial jurisdiction of the Philippines; d. The operator shall not allow any person below twenty-one (21) years old to be employed in its offshore gaming operations within the territory of the Philippines; e. The operator shall not allow the conduct of indecent and immoral activities which are contrary to public morals and interest; f. The operator shall not be involved in any activity proscribed by PAGCOR; and g. The operator shall not engage the services of a service provider not registered or accredited with PAGCOR. Please refer to the Offshore Gaming Regulatory Manual which can be downloaded from the PAGCOR website. 3. Guidelines and procedures regarding the "Know Your Customer" policy. This is defined in the POGO licensee’s Money Laundering and Terrorism Financing Prevention Program (MTPP). Each licensee is required to have an MTPP, in accordance with the requirements of the CIRR. 4. Is there a particular ethical standard and good corporate governance provided by AMLC that POGO should follow? - For AML/CFT regulations, the AMLA, as amended and its CIRR For operational governance, please refer to PAGCOR regulatory Issuances (found in their website). For other internet-based casinos covered under Appropriate Government Authorities (AGA), please refer to the regulatory issuances of the Cagayan Special Economic Zone (CEZA), and the Aurora Pacific Economic Zone and Freeport Authority (APECO) 5. Guidelines about AML risk management system related to POGO. Please refer to the Casino Implementing Rules and Regulations and the Offshore Gaming Regulatory Manual for proper and more complete guidance. 6. What are the requirements of e-casinos to be qualified operators and given approval to operate? Please refer to the regulations of the PAGCOR found in their website. 7. What actions are taken if it is discovered that a POGO is not complying with your provided guidelines or protocols? “Sect. 37 of the CIRR. Penal and Administrative Sanctions – Non-compliance with the provisions of this CIRR shall be subject to such penalties and sanctions as the AMLC and AGA may impose under the AMLA, and AGA’s Charters, respectively, as well as the AMLC and AGA’s implementing rules and regulations and issuances xxxxx” We hope we have been of assistance. Very truly yours, ALVIN L. BERMIDO FOI-Decision Maker AMLC Secretariat