Stricter gambling payment rules eyed

THE Bangko Sentral ng Pilipinas (BSP) is seeking to tighten regulations on online gambling payments to prevent the misuse of financial services and implement closer monitoring over the sector.

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The central bank posted a draft circular on its website which aims to establish regulations on online gambling payment services.

The proposed rules aim to “promote responsible use of digital financial services, strengthen financial consumer protection, uphold financial health, and mitigate the social and financial risks associated with online gambling.”

“Towards this end, it is imperative to ensure that digital payment services of PSPs (payment service providers) are not misused for activities that are socially harmful and detrimental to financial health,” the BSP said.

The booming gaming industry in the Philippines is now drawing heightened scrutiny amid concerns over rising addiction and financial problems among Filipinos.

The Department of Finance has proposed a tax on online gaming, as well as other possible measures to crimp the public’s access to digital gambling platforms, such as imposing limits on paying time or cash-in.

Under the BSP’s proposed circular, these regulations could cover PSPs engaged in these services as well as operators of a payment system (OPSs) serving as payment acquirer or aggregator of the online gambling operator.

It aims to establish standards and expectations for PSPs in the provision of online gambling payment services and set the enhanced know-your-customer measures to uphold applicable legal prohibitions on access to and participation in online gambling, it said.

Under the draft rules, PSPs and OPSS engaging or intending to engage in online gambling payment services must secure prior authority from the central bank.

They must also maintain a minimum capitalization of P300 million and a composite rating not lower than three based on the BSP Supervisory Assessment Framework.