Philippines central bank tightens rules after online casinos hide behind small shops

Bangko Sentral ng Pilipinas identified thousands of unlawful enterprises on digital payment platforms, many of which were online gambling sites masquerading as everyday establishments like beauty salons and bakeries. Deputy Governor Mamerto Tangonan emphasized the need to protect users from fraud, illegal activity, and money-laundering, noting that unchecked scams could hinder digitalisation. The regulator’s draft proposal shifts the burden to e-payment providers to conduct deeper due diligence, gather owner details, and maintain a database of verified merchants, with the threat of licence withdrawal for non-compliance.

Over 8,000 merchants have had their accounts closed, and the Philippine Amusement and Gaming chairman Alejandro Tengco acknowledged the challenge of unregistered casinos operating under benign façades. Industry bodies, including the EMoney Association and digital bank Maya, welcomed the initiative, while GCash has not responded. The tighter rules aim to sustain the rapid growth of e-payments, which now represent about two-thirds of retail transactions, without sacrificing security.