The Philippines could find itself back under international scrutiny for money laundering due to the rising threat posed by online gambling, according to a stark warning from the country’s central bank. With illegal operations exacerbating risks, the Bangko Sentral ng Pilipinas (BSP) is now exploring tougher measures to shield the nation from both financial crime and the personal devastation caused by gambling addiction.
A Looming Threat to Financial Integrity
On Tuesday, BSP Governor Eli Remolona Jr., who also heads the Anti-Money Laundering Council, highlighted the dangers of online gambling, particularly illicit platforms, in undermining the Philippines’ hard-won progress against financial crime. Speaking to reporters at an event hosted by the Fintech Alliance Philippines, Remolona emphasized the need for action to prevent the country from slipping back onto the Financial Action Task Force’s (FATF) gray list, a designation for jurisdictions under increased monitoring for money laundering and terrorism financing risks. “Basically, as before, we just want to put sand in the wheels” he stated, signaling a determination to slow down the risks tied to this popular but problematic pastime. “It will be resolved” he added with cautious optimism.
The warning is particularly significant given the Philippines’ recent history. In June 2021, the country was placed on the FATF gray list after it emerged that $81 million stolen from Bangladesh’s central bank had been laundered through casinos in Manila. This incident exposed critical weaknesses in the nation’s anti-money laundering framework, prompting intense international scrutiny. It was only in February of this year that the Philippines was removed from the FATF list, alongside a delisting from the European Commission’s high risk register, following significant reforms to tighten oversight of financial flows. 
However, the rapid growth of online gambling—a sector less visible and harder to regulate than physical casinos—threatens to undo these gains. Illegal online platforms, often operating beyond the reach of authorities, provide fertile ground for money laundering, as transactions can be conducted anonymously and across borders with ease. For a country still rebuilding its reputation as a safe financial hub, the stakes could not be higher.
From Casinos to Digital Dangers
The shift from traditional casinos to online gambling has introduced new challenges for regulators. Unlike physical venues, where oversight can be enforced through on-site inspections and licensing requirements, digital platforms operate in a shadowy space, often hosted in jurisdictions with lax regulations. This makes it difficult to track the flow of funds or identify the individuals behind transactions. In the Philippines, where online gambling has surged in popularity, the risks are twofold: not only does it facilitate illicit financial activities, but it also poses a direct threat to vulnerable individuals through addiction and financial ruin.
The BSP’s response has been swift, if still evolving. Last week, the central bank ordered e-wallet providers to suspend links to online gambling platforms within a 48-hour window, a temporary measure that will remain in place until a comprehensive policy is finalized. Earlier this month, the BSP revealed it was in the closing stages of developing stricter regulations for online gambling payment services. These rules aim to curb addiction and protect Filipinos from financial harm by introducing enhanced safeguards.
Among the proposed measures are biometric checks and facial recognition to verify user identities, ensuring that only eligible individuals can access gambling services. Additionally, the BSP plans to impose daily transaction limits and time-based restrictions on gambling-related payments to prevent impulsive behavior and excessive losses. Users will also have access to tools allowing them to set personal spending caps or take voluntary breaks from gambling—a move designed to empower individuals to manage their habits more effectively.
A Dual Battle: Crime and Addiction
While the threat of money laundering looms large, the BSP’s actions reflect a broader concern for the social and economic toll of online gambling. In a country where poverty remains a persistent challenge, the lure of quick wins through digital betting can lead to devastating consequences for families already struggling to make ends meet. Stories of individuals losing life savings or falling into debt due to gambling addiction are increasingly common, prompting regulators to prioritize consumer protection alongside financial security.
The central bank’s focus on payment services is a strategic one. By targeting the mechanisms that enable online gambling—namely, the digital wallets and payment gateways that facilitate transactions—the BSP hopes to disrupt the ecosystem that sustains both legal and illegal operators. This approach mirrors global trends, where financial regulators are increasingly scrutinizing fintech innovations for their potential misuse in criminal activities or exploitative practices.
Yet, implementing these measures is no small feat. The online gambling industry, even when operating legally, is a significant contributor to the economy in some regions of the Philippines, providing jobs and tax revenue. Striking a balance between curbing its harmful effects and preserving legitimate economic benefits will require careful calibration. Critics argue that overly stringent regulations could drive the industry further underground, making it even harder to monitor and control.
The Road Ahead: Challenges and Opportunities
The Philippines’ exit from the FATF gray list earlier this year was a hard-fought victory, reflecting years of reforms to strengthen anti-money laundering laws, enhance casino oversight, and improve coordination between regulators and law enforcement. Returning to the list would not only damage the country’s international standing but also deter foreign investment at a time when economic recovery remains a priority. With online gambling emerging as a new frontier for financial crime, the BSP’s proactive stance signals an awareness of the urgency required to address this threat.
However, the effectiveness of the proposed regulations remains to be seen. Biometric verification and transaction limits are promising steps, but their success will depend on robust enforcement and cooperation from fintech providers, many of whom have built business models around seamless, frictionless transactions. There is also the question of public compliance—whether Filipinos, accustomed to the accessibility of online gambling, will embrace tools like spending caps or voluntary breaks, or simply seek out unregulated platforms to bypass restrictions.
Beyond domestic challenges, the Philippines must contend with the transnational nature of online gambling and money laundering. Many illegal platforms operate from servers located outside the country, often in jurisdictions with minimal oversight. Tackling this issue will require not only internal reforms but also international collaboration—a task complicated by differing legal frameworks and enforcement capacities across borders.
For now, the BSP’s message is clear: the risks of online gambling, both to the nation’s financial system and to its citizens, cannot be ignored. As Governor Remolona and his team finalize their policy framework, the coming months will test the Philippines’ ability to safeguard its progress while navigating the complex intersection of technology, crime, and human behavior. Whether these efforts will be enough to keep the country off the global watch list—or to protect its most vulnerable from the pitfalls of digital betting—remains an open question.
As the BSP rolls out its new regulations, the balance between security, economic impact, and personal freedom will be under intense scrutiny. The outcome could set a precedent for how other nations in the region address the growing challenge of online gambling in an increasingly digital world.
