Press Release - Gatchalian seeks to probe possible bank involvement in establishment of POGO hubs

Senator Win Gatchalian has filed a resolution seeking to investigate the possible involvement of banks in the construction and establishment of Philippine Offshore Gaming Operators (POGOs) in the country.

The legislator filed proposed Senate Resolution 1193 calling for an inquiry in aid of legislation on banks' apparent failure to flag suspicious POGO-related transactions.

According to Gatchalian, recent Senate investigations on POGO-related activities revealed the existence of bank transactions involving companies owned by Guo Hua Ping, also known as Alice Guo, amounting to hundreds of millions of pesos which enabled the construction and establishment of the POGO hub in Bamban. The amount involved is far beyond the financial capacity of the companies as indicated in their financial statements.

"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. He noted that the transactions involved significant amounts of money but were not flagged by concerned banks and financial institutions.

"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 said.

He pointed out that such circumstances raise questions about the adequacy of existing anti-money laundering and counter-terrorism financing (ATM-CTF) regulations and guidelines for banks and financial institutions. He stressed that Republic Act 9194 or the Anti-Money Laundering Act of 2001 requires covered institutions, including banks, to report all covered and suspicious transactions to the Anti-Money Laundering Council within five working days from the date of occurrence.

"The Philippines remains on the Financial Action Task Force's grey list, and our country needs to enhance its anti-money laundering and counter-terrorism financing activities. The private sector's support and compliance are crucial to strengthening the country's AML-CTF regime,