The Bangko Sentral ng Pilipinas (BSP) is stepping up efforts to protect the country’s financial system on two fronts — tightening guidance for banks dealing with casino junket operators while bringing discussions on financial stability directly to stakeholders in the regions.
The central bank this week released new guidance for BSP-Supervised Financial Institutions (BSFIs) on managing risks associated with casino junket operations, shortly after holding its first regional financial stability briefings in Cebu and Davao together with the Financial Stability Coordination Council (FSCC).
While the two initiatives address different issues, both reflect the BSP’s continuing focus on strengthening risk management across the Philippine financial sector.
New guidance for banks handling casino junket clients
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Casino junket operators arrange gaming-related services for high-value players, including travel arrangements, gaming room reservations, and credit facilities.
According to the BSP, transactions involving these businesses can carry higher risks of money laundering, terrorism financing, proliferation financing, and other illicit activities if they are not monitored closely.
To help banks better manage these risks, the BSP issued a guidance paper titled Risk Management Practices for Customers Engaged in Casino Junket Operations. The document outlines practical safeguards aimed at preventing banks and other supervised financial institutions from being used to move illegal funds.
Among the warning signs identified are unusually large cash movements, complex ownership structures among corporate clients, and transactions designed to obscure the movement of money.
“Financial transactions linked to CJOs can pose elevated money laundering risks,” BSP Deputy Governor Lyn I. Javier said.
“We identify the best practices and red flags BSFIs need to watch out for to be strong partners in our shared goal of curtailing crime and safeguarding the integrity of the financial system.”
The guidance encourages banks to review their controls in five areas: board and senior management oversight, money laundering and terrorism financing prevention programs, customer acceptance and identification, transaction monitoring and suspicious transaction reporting, and employee training.
It also points to practices that many banks are already using, including enhanced due diligence for higher-risk clients, automated transaction monitoring, client link analysis, independent verification with regulators, and participation in information-sharing initiatives.
The BSP said cooperation between regulators — including the Philippine Amusement and Gaming Corporation (PAGCOR)—and financial institutions remains an important part of identifying and managing risks linked to casino junket operations.
The guidance was developed after the central bank reviewed selected banks with exposure to casino junket operators and transactions involving junket players.
Financial stability conversations move beyond Metro Manila
IMAGE CREDIT: BSP
The BSP also brought its financial stability discussions outside the capital for the first time, holding regional briefings in Cebu on July 6 and Davao on July 8 together with the FSCC.
Representatives from banks, local government units, academe, the media, and other financial sector stakeholders attended the sessions, which focused on the findings of the 2025 Financial Stability Report (FSR).
Published annually, the report examines the major domestic and global developments that could affect the stability of the Philippine financial system and its ability to support economic growth.
“Financial stability is everyone’s concern, in some ways even more for banks, businesses, and citizens who are farther from where decisions are made,” said BSP Assistant Governor and FSCC Technical Secretariat Head Veronica B. Bayangos.
She was joined by BSP Bank Officer V Ronald D. Margallo, Philippine Deposit Insurance Corporation Vice President Jose G. Villaret Jr., and BSP Director Alvin D. Gamat during panel discussions with participants in Cebu and Davao.
Why it matters
IMAGE CREDIT: BSP
The BSP’s latest moves show that financial stability is no longer viewed solely as the responsibility of regulators and banks based in Metro Manila.
As financial transactions become more complex and illicit financial activities grow more sophisticated, the central bank is asking financial institutions to tighten their internal controls while also encouraging broader participation in conversations about risks facing the country’s financial system.
For banks, the message is straightforward: stronger governance, closer monitoring of high-risk transactions, and better coordination with regulators will continue to be central to maintaining confidence in the Philippine financial system.
