Philippines urged to intensify oversight of crypto and gambling risks

The Philippines is facing renewed calls to strengthen its oversight of cryptocurrency and online gambling sectors to mitigate the risks of money laundering and financial crime.

This comes in the wake of the country’s recent removal from the European Commission’s ‘high-risk’ money laundering list, a move that reflects significant progress in aligning with global regulatory standards and improving the nation’s financial reputation.

Moody’s, a global credit rating agency, has emphasised the importance of continued vigilance, particularly in sectors such as online gaming and cryptocurrency, which remain vulnerable to illicit financial activities.

Xiao Chen, Associate Director at Moody’s, highlighted that while the delisting by the European Commission is a positive step,

“The delisting is expected to improve the country’s financial reputation, ease access to the EU financial system, and support cross-border trade and investment,” he said.

“Continued vigilance will be essential, particularly in sectors such as online gaming and cryptocurrency, to ensure that residual risks are effectively managed.”

The Anti-Money Laundering Council (AMLC), chaired by Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr., is actively conducting a risk assessment covering various forms of online gambling and digital assets.

Authorities are focused on identifying emerging threats, especially as technological advancements present new challenges in the ongoing battle against financial crime.

Despite these regulatory milestones, money laundering risks persist. Online gaming and cryptocurrency businesses operate beyond traditional financial sectors, often utilizing advanced technology and cross-border transactions that complicate oversight.

The Philippine Amusement and Gaming Corporation (PAGCOR) reported that electronic gaming revenues reached P48.79bn in 2024, underscoring the scale and potential vulnerabilities within the industry.

The FATF’s decision to remove the Philippines from its gray list followed a comprehensive review, including on-site visits and evidence of strengthened anti-money laundering and counter-terrorism financing frameworks.

However, experts caution that ongoing reforms and inter-agency coordination are essential to maintain this status and protect the integrity of the financial system.

As the Philippines continues to expand its digital economy, authorities are ramping up monitoring efforts and enhancing regulatory frameworks to address the risks associated with cryptocurrencies and online gambling.