The Philippines is moving to strengthen its anti-money laundering (AML) framework, with online gaming operators and digital finance companies expected to face stricter oversight under a new legislative proposal.
New Bill Aims to Modernize AML Laws
Senator Joel Villanueva has filed Senate Bill No. 1983, which seeks to amend Republic Act No. 9160 to better address modern money laundering methods. The proposal reflects growing concerns that existing laws are no longer sufficient to combat increasingly sophisticated financial crimes.
According to Villanueva, the legislation is designed to enhance the country’s defenses against cyber threats while safeguarding the integrity of its financial system.
Expanded Scope for Regulated Entities
A key feature of the bill is the expansion of “covered persons” under AML regulations. The updated framework would include a broader range of sectors, such as:
- Online gambling operators
- Trust and company service providers
- Lawyers and accountants involved in financial transactions
- Virtual asset service providers
This expansion means that these entities, particularly online gaming operators that rely heavily on digital payments, will face stricter monitoring and compliance requirements. The goal is to ensure closer oversight of customer activity and reduce the risk of financial abuse within these platforms.
Stronger Enforcement Powers for AML Authorities
The bill also proposes granting the Anti-Money Laundering Council (AMLC) enhanced enforcement capabilities. If approved, the AMLC would have the authority to:
- Suspend suspicious transactions
- Freeze assets
- Issue subpoenas more efficiently
In addition, the proposal includes streamlined court procedures to accelerate investigations involving suspicious financial activity. These measures aim to reduce delays and improve the effectiveness of enforcement actions.
Increased Compliance and Reporting Requirements
Beyond enforcement, the draft introduces stricter customer due diligence and reporting obligations. It also strengthens administrative penalties to ensure compliance is not treated as a formality but as a critical part of preventing illicit financial flows.
Impact on Digital Finance and Gaming Industry
For the online gaming and digital finance sectors, the proposed changes signal a clear shift toward tighter regulation and closer scrutiny of financial transactions. As the bill progresses through the legislative process, operators will need to prepare for higher compliance standards and increased accountability.
The move reflects a broader effort to adapt to the rapid evolution of digital finance and the rise of cyber-enabled financial crimes. Ultimately, the legislation aims to ensure that industries such as online gaming and virtual assets play a more active role in maintaining a secure and transparent financial ecosystem in the Philippines.
