Philippine Casinos Face Major AML Probe Over Links to Public Corruption Scandal

• The Philippine Anti-Money Laundering Council (AMLC) has launched an investigation into several casinos over their alleged role in a major public corruption scandal.
• The probe was triggered by Senator Panfilo Lacson, who claimed former public works officials laundered illicit funds by losing over PHP950 million ($16.6m) at the venues.
• The investigation will focus on whether the casinos complied with their strict AML obligations, including reporting large transactions and flagging suspicious activity as required by law.
• Casinos in the Philippines have been designated as “covered persons” under the AML framework since 2017, requiring them to have robust compliance programs.
• The scandal links alleged corruption in critical public flood-control projects directly to the casino sector, placing the industry’s compliance standards under intense national scrutiny.

The casino industry in the Philippines is facing a major new investigation from the country’s financial intelligence unit, the Anti-Money Laundering Council (AMLC). The probe follows explosive allegations made by Senator Panfilo Lacson that several casinos were used to launder hundreds of millions of pesos embezzled from public infrastructure projects.

AMLC Executive Director Matthew David has confirmed that the council will investigate the claims and could impose significant penalties on any casinos found to have breached their anti-money laundering ( AML) obligations.

The Allegation: Laundering via Casino Losses

The investigation was sparked by a public exposé from Senator Lacson, who claimed to have official records from the gaming regulator, PAGCOR. He alleged that a group of former officials from the Department of Public Works and Highways (DPWH) had systematically laundered illicitly obtained funds by losing over PHP950 million (approx. $16.6m) across at least 13 different casinos.

Lacson claims the money was siphoned from critical flood-control projects that were either never started or left incomplete. He cited reports showing suspicious patterns, including large cash conversions with minimal playing time by the officials, and the use of multiple government IDs and aliases on casino membership forms.

Casino Compliance Under the Microscope

This case puts the compliance functions of the country’s casinos directly in the spotlight. Since 2017, casinos in the Philippines have been legally classified as “covered persons” under the country’s AML framework. This designation comes with a strict set of legal obligations, including:

• Verifying the identities of all players ( KYC).
• Maintaining customer records for at least five years.
• Reporting any single cash transaction of PHP5 million or more to the AMLC.
• Flagging any other suspicious activity, regardless of the amount.

The AMLC’s investigation will now focus on whether the casinos involved fulfilled these legal duties or if their staff failed to flag the highly suspicious patterns of activity alleged by Senator Lacson.

A New Test for a Scrutinised Industry

This scandal adds another layer of intense pressure on the Philippine gaming industry, which is already grappling with a separate, wide-ranging Senate inquiry into the social harms of online gambling. The AMLC probe shifts the focus from player protection to the licensed industry’s crucial role as a gatekeeper against financial crime and political corruption. The outcome will be a critical indicator of the enforcement standards that operators in the Philippines will be held to going forward.