The Central Bank of the Philippines has issued a guidance paper telling BSP-Supervised Financial Institutions to strengthen anti-money laundering and counter terrorism and proliferation financing controls for customers engaged in casino junket operations. The paper addresses risks linked to junket operators, which arrange gaming-related services for high-value patrons, and sets out safeguards to reduce the risk that supervised institutions are used for money laundering, terrorism financing, proliferation financing and other illicit activity. The guidance identifies red flags including unusual cash movements, complex ownership structures and layered transactions. It recommends stronger risk management across five areas: board and senior management oversight, the money laundering and terrorism financing prevention program, client acceptance and identification, ongoing monitoring and suspicious transaction reporting, and self-assessment and training. The paper also points to practices institutions should maintain, including enhanced due diligence for high-risk clients, automated transaction monitoring, client link analysis, independent verification with regulatory agencies and participation in information-sharing initiatives. The guidance is based on the Central Bank of the Philippines' review of selected banks with exposure to casino junket operators and junket players' transactions, and it emphasizes continued information sharing among the central bank, the Philippine Amusement and Gaming Corporation and supervised institutions.

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