Senator eyes possible collusion between banks, Pogos
Sen. Sherwin Gatchalian has vowed to intensify the inquiry into the possible involvement of banks and other financial institutions in money laundering cases linked to illegal activities of Philippine offshore gaming operators (Pogos).
He said the banks’ accountability on their “negligence” to flag alleged money laundering activities linked to dismissed Bamban, Tarlac Mayor Alice Guo, also known as Chinese national Guo Hua Ping, was an angle not given a spotlight during the investigation.
“We will pursue that. Money laundering is equally as big of a crime that Pogos have perpetuated. So we must look at this in detail,” he said.
For instance, he questioned why banks failed to flag the P7 billion in transactions that enabled Guo and her cohorts to build a Pogo hub in Bamban.
“How were they able to bring in the P7 billion without being detected by the Anti-Money Laundering Council (AMLC), and why wasn’t it declared by the bank? … Definitely there were lapses,” Gatchalian said, noting that a P500,000 worth of deposit is a transaction that is automatically flagged by banks.
“If the banks had complied with the requirements of the antimoney laundering law, this would have been nipped in the bud,” he said in an earlier statement, noting that suspicious transactions involving Guo’s companies started as early as 2019.
Conduits
The senator surmised that companies set up by the Guo family were likely used as conduits for money laundering to fund the construction of the Pogo hub in Bamban, which was estimated to have cost more than P6 billion.
“If you examine the financial statements of Guo-related businesses, including their tax returns, you won’t be able to trace where the money came from. For me, this is a classic case of money laundering,” he pointed out.
Guo and 35 other people tagged in illegal offshore gaming operations are facing 87 counts of money laundering.
Gatchalian, during the earlier Senate investigation into Guo’s links to Pogos, disclosed that billions of “unjustified money” went into the bank accounts of the dismissed mayor from 2019 to 2022, which he noted could not have been made without possible connivance with local banks.
The chair of the Senate committee on ways and means filed in September last year Senate Resolution No. 1193, which seeks to investigate the apparent failure of local banks to flag Pogo-related transactions linked to criminal activities.
In the resolution, Gatchalian noted the existence of bank transactions involving Guo’s companies amounting to “hundreds of millions of pesos” coursed through the banking system and, “unfortunately, were not flagged by the concerned banks and financial institutions.”
Ineffective controls
The lawmaker said that such 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.
“It is incumbent upon financial institutions to collect and analyze financial data to identify suspicious transactions and patterns that may indicate money laundering. These circumstances raise questions on the adequacy of existing antimoney laundering and counterterrorism financing regulations and guidelines for banks and financial institutions,” Gatchalian stressed in the resolution.
During the last Senate hearings on Pogos, the AMLC said it was still conducting its investigation on the source of funds used for the construction of the Bamban Pogo hub. Similarly, an investigation is also being conducted into compliance issues of banks involved in Pogo-related transactions.
Gatchalian also earlier called for sustained action against Pogos to ensure that the industry’s remnants are effectively purged.
The deadline for the cessation of all Pogo operations in the country lapsed on Dec. 31 last year.
However, Gatchalian warned that Pogos have transformed themselves into other business entities, such as Business Process Outsourcing companies, resorts and restaurants, to camouflage their illegal activities.
