Senator Calls for Investigation into Bank Involvement with POGOs

Senator Win Gatchalian has introduced a resolution to investigate potential bank involvement in the establishment of Philippine Offshore Gaming Operators (POGOs). He filed Senate Resolution 1193, which seeks to examine banks’ failure to identify suspicious transactions linked to these gaming operations.

Gatchalian’s move follows recent Senate hearings that uncovered substantial bank transactions tied to companies owned by Alice Guo, also known as the Chinese national named Guo Hua Ping. According to the lawmaker, bank transactions involving the companies of Guo amounting to “hundreds of millions of pesos” facilitated the development of a POGO hub in Bamban, Tarlac. Notably, the financial capacity of these companies, as shown in their statements, does not support such high transaction volumes.

The senator highlighted a significant increase in cash flows and check disbursements associated with Guo’s accounts in 2020, a year when many businesses struggled due to the COVID-19 pandemic. He emphasized that these unusual activities went unreported by the banks involved.

“A remarkable surge in cash flows, check disbursements, and a number of transactions involving the said Guo accounts was highest in 2020 which was highly unusual and suspicious considering that the Covid-19 pandemic paralyzed businesses and economies worldwide,” Gatchalian said in his statement. He pointed out that the transactions involved significant amounts of money but were not flagged by concerned banks and financial institutions.

Gatchalian expressed concern over the banks’ internal controls and their ability to detect suspicious activities. He pointed out that the current situation raises questions about the effectiveness of existing anti-money laundering and counter-terrorism financing regulations. He referenced Republic Act 9194, which mandates that banks report suspicious transactions to the Anti-Money Laundering Council within five days.

“The failure of these banks to report these dubious transactions raises the matter of the effectiveness of their internal controls and procedures for identifying and reporting suspicious transactions,” he added.

The senator stressed the importance of enhancing the Philippines’ anti-money laundering framework, especially as the country remains on the Financial Action Task Force’s grey list. He called for greater compliance from the private sector to strengthen the country’s regulatory regime.

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