BSP to impose stricter rules on online gambling payments

Manila, Philippines – Online gamblers will be compelled to open an e-wallet account solely for gambling transactions under stricter rules that the Bangko Sentral ng Pilipinas (BSP) will roll out soon.

The central bank has sent out a draft circular to bankers, digital payment service providers, and casinos among others, adding to the string of proposed measures to scrutinize online gambling activities.

The regulation of the retail payment system is among the BSP’s mandates, and in drafting the tighter rules the central bank said “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.”

Domestic e-wallet firms count fintech giants GCash and PayMaya while GrabPay, ShopeePay, and JuanCash, among others, also offer non-bank retail payment access. It is unclear which among these digital wallets currently allow paperless payments for online gambling.

The BSP draft circular directed the PSPs to “provide the facility for the creation of a separate OGTA [online gambling transaction account] for eligible account owners who intend to participate in online gambling.”

Just like when opening bank accounts or e-wallet accounts, KYC or Know-Your-Customer measures will be implemented, it said.

To curb fraud, a mandatory facial biometric verification for account opening and periodic biometric verifications will also be required.

The new rules also impose a daily ceiling on transactions – no more than 20 percent of the average daily balance of the eligible owner’s transaction account.

The transaction window has also been set not exceeding six hours a day.

The sanctions include a monetary penalty of up to P1 million for each transactional violation. Non-monetary penalty would entail the suspension or revocation of authority to offer online gambling payment services.

Efforts are snowballing in Congress to crack down on online gambling, which has been described as a menace to society and a bad influence especially among the young people.

NewsWatch Plus Business News Anchor Lois Calderon contributed to this story.