Licensed e-gaming operators defend use of mobile wallets

The draft circular by the Bangko Sentral ng Pilipinas (BSP) to tighten rules on mobile wallets underscores why regulated non-bank electronic money issuers should be retained as key enforcement tool rather than be disconnected from the gambling-related transactions.

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This according to an association of licensed online gambling firms in the country PlaySafe Alliance Philippines.

The group's spokesman, Mike Defensor, said mobile wallets provide Know Your Client (KYC) data and transaction trails that enable authorities to trace flows, link accounts to suspected operator networks, and build cases that would be far harder to assemble if payments reverted to cash or unregulated channels.

Defensor said that the BSP's draft measures including stronger identity verification, daily limits and mandatory monitoring for gambling-related activity create the legal and technical scaffolding needed for wallets to flag and block illicit transfers promptly.

He said the ability to freeze or temporarily restrict suspect e-wallet accounts, when exercised under clear due-process rules, can stop funds in transit and prevent rapid dispersion or laundering that often frustrates subsequent investigations.