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IN A BID to prevent the misuse of financial services provided and implement closer monitoring, the Bangko Sentral ng Pilipinas (BSP) will be setting up a strict system to tighten regulations on online gambling payments.
This came amidst call to totally ban online gambling even as the central bank posted a draft circular on its website that aims to establish regulations on online gambling payment services.
According to the BSP, the proposed rules aim to “promote responsible use of digital financial services, strengthen financial consumer protection, uphold financial health, and mitigate the social and financial risks associated with online gambling.”
“Towards this end, it is imperative to ensure that digital payment services of payment service providers (PSPs) are not misused for activities that are socially harmful and detrimental to financial health,” it cited.
‘The country’s booming gaming industry is now drawing heightened scrutiny as several cause-oriented groups … expressed concern over the rising addiction and financial problems becoming prevalent among Filipinos.’
BOOMING GAMING INDUSTRY
The country’s booming gaming industry is now drawing heightened scrutiny as several cause-oriented groups, including religious organizations and a number of lawmakers, expressed concern over the rising addiction and financial problems becoming prevalent among Filipinos.
In an earlier statement, the Department of Finance (DoF) proposed a tax on online gaming as well as other possible measures to lessen the public’s access to digital gambling platforms, such as imposing limits on paying time or cash-in.
Under the BSP’s proposed circular, these regulations could cover PSPs engaged in these services as well as operators of payment systems (OPSs) serving as payment acquirer or aggregator of the online gambling operator.
The BSP proposal also aims to establish standards and expectations for PSPs in the provision of online gambling payment services and set the enhanced know-your-customer measures to uphold applicable legal prohibitions on access to and participation in online gambling.
SECURE B.S.P. PERMIT
Under the draft rules and guidelines of the proposal, PSPs and OPSs engaging or intending to engage in online gambling payment services must secure prior authority from the central bank.
It added that payment service providers must likewise maintain a minimum capitalization of ₱300 million and a composite rating not lower than three based on the BSP Supervisory Assessment Framework.
PSPs and OPSs must also have strong anti-money laundering and counter-terrorism financing (AML/CTF) risk management; robust fraud management system and a board-level committee on AML/CTF compliance.
In addition, PSPs that offer or facilitate online gambling payment services shall not be allowed to provide links to online gambling websites or otherwise provide any functionality that will redirect a user to an online gambling operator’s platform.