AMLC to Probe Banks Linked to Guo, POGO Money Laundering

November 12, 2024 Philippines Crime & Legal

The AMLC has launched an investigation into banks that failed to report billions in suspicious POGO transactions linked to dismissed Bamban Mayor Alice Guo.

The Anti-Money Laundering Council (AMLC) has launched an administrative investigation into several banks accused of failing to report suspicious financial transactions involving Philippine Offshore Gaming Operators (POGOs) connected to the dismissed Mayor of Bamban, Tarlac, Alice Guo. The investigation, which focuses on billions of pesos that were funneled through Guo’s family businesses, comes amid growing concerns over money laundering activities tied to POGOs in the Philippines.

Senator Grace Poe, who chairs the Senate Committee on Finance, provided an update on the investigation during a discussion on the proposed AMLC budget for 2025. According to Poe, the AMLC has initiated “enforcement action proceedings” against the banks involved in these suspicious transactions. The aim is to determine whether these financial institutions violated regulations by failing to file Suspicious Transaction Reports (STRs) as required under the Anti-Money Laundering Act (AMLA).

“The AMLC opened the enforcement action proceedings against those banks involved in Alice Guo’s case to determine if they violated the requirement under AMLC to file STRs [suspicious transaction reports] to AMLC. These proceedings are ongoing,” Poe confirmed in an interview with Malaya.

Poe also detailed the potential consequences the banks could face if they are found guilty of not filing the required reports. The penalties could range from P250,000 to P500,000 per transaction, with fines potentially reaching P10 million to P20 million depending on the specific circumstances. In addition, the banks could face criminal charges under the AMLA for their role in facilitating money laundering activities.

The investigation centers on a series of suspicious transactions related to the construction of a POGO hub in Bamban, Tarlac. These transactions were funneled through Guo’s family-run businesses, and it is alleged that the involved banks failed to flag or report these transfers to the AMLC, despite the large sums of money moving through the system.

READ: Quad Committee Probes Possible Money Laundering Through POGOs in Land Purchases

Senator Risa Hontiveros, deputy minority leader, argued that banks should face steeper fines. Based on findings from Senate investigations, she argued that the volume and nature of the transactions warranted stronger penalties. Hontiveros emphasized that the suspicious transfers went unnoticed by the banks, even though they were linked to the large-scale construction of a POGO hub in Bamban, Tarlac.

Senator Hontiveros emphasized that the banks did not raise any red flags about the billions of pesos moving through these accounts. These funds were funneled through businesses owned by Alice Guo’s family, with no oversight from the government.
Senate Minority Leader Aquilino Pimentel III echoed Hontiveros’s concerns, calling for an explanation as to why the AMLC did not detect these suspicious activities sooner. Pimentel pointed out that 87 counts of money laundering were filed against Guo and her associates only after Senate investigations exposed the illicit transactions.

“I need an explanation from the AMLC as to why they did not detect these suspicious transactions before they were flagged by the office of Senator Risa Hontiveros,” Pimentel said.

In response, Poe explained that the delay in detecting the suspicious activities stemmed from the failure of the involved banks to report the transactions through STRs. She also suggested that the investigation might uncover evidence of collaboration between the banks and Guo’s network.

“This is also where it will come into play where the bank representative might have to be investigated as well,” Poe said, adding there is a possibility of connivance between these banks and Alice Guo’s group.

To address concerns about the detection of suspicious transactions moving forward, Poe highlighted that the Senate has allocated additional funds for the AMLC to invest in technology. This includes acquiring Artificial Intelligence (AI) tools to help the council process the vast number of STRs it receives daily. Once the AI technology is in place, the AMLC will be able to more effectively analyze large volumes of data and identify suspicious activities more quickly.

“The AMLC needs support to procure and sustain its Artificial Intelligence project and other significant programs of AMLC like the subscription of security IT software. This is why we added funding under the Senate Committee Report for the Artificial Intelligence Project of AMLC to help them evaluate the great number of suspicious transaction reports that they receive,” Poe explained.

She pointed out that with AI, they will be able to sort through the thousands of daily transactions they receive without having to do everything manually.

READ: Philippines Nears Exit from FATF Grey List Amid Anti-Money Laundering Reforms

Senator Poe emphasized that the integration of AI into the AMLC’s operations will be a game-changer in fighting money laundering. She noted that the technology would significantly reduce the manual workload and improve the efficiency of monitoring suspicious transactions. The AMLC’s ability to detect money laundering activities more swiftly could prevent future scandals involving POGOs and other illicit operations.

In addition to the ongoing investigation into Guo and her associates, the AMLC has been active in pursuing other money laundering cases. According to Poe, the council has filed 744 cases of money laundering, civil forfeiture, and administrative cases from 2017 to the third quarter of 2024. This includes 183 cases filed in 2024 alone, one of which involves the 87 counts of money laundering against Alice Guo and her cohorts.