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Philippines Proposes Stronger AML Rules for Online Gambling

Philippines Proposes Expanded AML Rules for Online Gambling – Lawmakers Seek Stronger Enforcement and Asset Freezing Powers

Key Takeaways

• A proposed amendment to the Anti-Money Laundering Act would extend stricter compliance rules to online gambling operators and virtual asset service providers.
• The measure would introduce enhanced customer due diligence, reporting requirements, and stronger sanctions for breaches.
• The Anti-Money Laundering Council could gain expanded authority to suspend transactions and freeze assets.
• Lawmakers link the reform to the need for stronger investigative powers and faster enforcement after past scrutiny from the Financial Action Task Force.
• Authorities are increasing coordination to combat illegal online gambling and black market activity.

Proposed Amendment Expands AML Scope to Online Gambling and Virtual Assets

Lawmakers in the Philippines are seeking to strengthen the country’s anti-money laundering framework through a proposed amendment to the Anti-Money Laundering Act, known as AMLA. Senator Joel Villanueva has filed the measure, arguing that the current law must adapt to an evolving financial environment shaped by digital financial services and virtual assets.

If adopted, the amendment would expand the range of entities subject to enhanced AMLA compliance requirements. Online gambling operators would be explicitly included, alongside virtual asset service providers and other businesses. For operators in the iGaming and crypto sectors, this would mean additional regulatory obligations under Philippine law.

The proposal introduces stricter customer due diligence and reporting requirements. Companies covered by the expanded AMLA framework would face more detailed compliance standards, with stronger sanctions outlined in cases of non compliance. While the text does not specify the exact penalties, it makes clear that enforcement measures would be intensified.

For international operators and crypto focused platforms assessing the Philippine market, the amendment signals a move toward closer scrutiny of transaction flows and customer verification processes.

Greater Powers for the Anti-Money Laundering Council

A central element of the proposal concerns the authority of the Anti-Money Laundering Council, or AMLC. Under the amendment, the AMLC would be granted broader powers to monitor and act against suspected illegal financial activity.

These enhanced powers would include the ability to issue orders suspending transactions and freezing assets when deemed necessary. Such authority would allow regulators to intervene more rapidly in cases involving suspected money laundering or illicit financial flows linked to online gambling or virtual asset services.

Senator Villanueva has framed the reform as part of a broader effort to safeguard the credibility and resilience of the Philippine financial system. He has stated that sustained reforms are necessary both to maintain compliance with international standards and to respond to increasingly sophisticated methods used to conceal illicit funds.

For gambling and crypto businesses, stronger asset freezing and transaction suspension powers could translate into faster enforcement actions and more immediate operational consequences in the event of investigations.

Connection to FATF Grey List and International Standards

The legislative initiative follows recent developments related to the Philippines’ standing with the Financial Action Task Force, or FATF. The country was placed on the FATF grey list in June 2021 due to shortcomings in its anti-money laundering regime.

In February 2025, the Philippines was removed from the grey list after implementing an action plan designed to address identified weaknesses in its AML enforcement strategy. According to the proposal’s rationale, the new amendment seeks to address FATF’s emphasis on stronger investigative powers, improved supervision of covered entities, and faster enforcement following regulatory infringements.

By explicitly bringing online gambling operators and virtual asset service providers within enhanced AML compliance requirements, lawmakers aim to align domestic regulation more closely with international expectations.

For international users and operators, FATF related developments can influence cross border financial relationships, correspondent banking access, and the perceived risk profile of a jurisdiction. The proposed amendment therefore sits within a broader context of maintaining international regulatory credibility.

Heightened Focus on Illegal Online Gambling and Black Market Activity

The push for stricter AML enforcement coincides with intensified efforts to combat illegal online gambling in the Philippines. Lawmakers have recently scrutinized enforcement agencies over alleged failures to shut down unauthorized gambling operations.

Following a Senate hearing that examined proposed changes to online gambling laws, the Cybercrime Investigation and Coordinating Centre, or CICC, confirmed that it has partnered with the Presidential Anti-Organised Crime Commission, or PAOCC. The PAOCC serves as the lead authority tasked with addressing black market activities in the country.

Under this partnership, the CICC has been assigned to develop case files for the PAOCC. The cooperation is intended to strengthen enforcement actions against illegal online practices and support efforts to bring operators involved in unlawful activity to justice.

Authorities have described the collaboration as part of a broader commitment to eliminate illegal online operations and secure the digital environment. Although the amendment to AMLA is a separate legislative initiative, both developments reflect a policy focus on tightening oversight of online gambling and related financial flows.

For licensed operators and platforms using digital payment systems, including crypto related services, this environment points to closer monitoring of compliance standards and potential enforcement exposure if requirements are not met.

Our Assessment

The proposed amendment to the Anti-Money Laundering Act would extend stricter compliance obligations to online gambling operators and virtual asset service providers in the Philippines. It would also grant the Anti-Money Laundering Council broader powers to suspend transactions and freeze assets.

The initiative follows the country’s recent removal from the FATF grey list and aligns with calls for stronger investigative authority and faster enforcement. At the same time, Philippine authorities are increasing coordination to combat illegal online gambling and black market activity. Together, these measures indicate a regulatory environment in which AML compliance and enforcement in the online gambling and digital asset sectors are set to become more stringent.