BSP: No more easy gambling bets

The Bangko Sentral ng Pilipinas (BSP) is seeking to implement stricter rules on online gambling payment services, including a ban on lending features and redirect links on payment platforms, to curb the social and financial risks linked to gambling.

- By DERCO ROSAL

"It is imperative to ensure that digital payment services of payment service providers (PSPs) are not misused for activities that are socially harmful and detrimental to financial health," the BSP said in a draft circular.

As such, the BSP has proposed standards for payment firms and system operators handling online gambling, including stricter know-your-customer checks to enforce access restrictions.

Under the proposal, PSPs must secure prior approval from the BSP before processing online gambling transactions, subject to strict capital, governance, and anti-money laundering and counterterrorism financing (AML/CTF) requirements.

Those who fail to meet or maintain these standards may face suspension or revocation of their authority.

Payment firms are also prohibited from linking users to online gambling websites or redirecting them to gambling platforms.

PSPs must adopt board-approved onboarding and monitoring procedures for online gambling operators (OGOs), ensuring they are licensed, compliant, and in good standing with regulators.