MANILA: Philippine lawmakers are calling for a halt to online gambling operations, which they say are threatening national security and turning the country into a washing machine for dirty money.
On Wednesday, Senate Minority Leader Franklin Drilon said the Philippines has become a “laundromat for dirty money” and has been used by organized syndicates.
“Our banking system, the financial system in general, is being used as a washing machine, where dirty money coming from every part of the globe is brought in, placed in casinos, banks or anywhere, and comes out clean,” he said.
The so-called Philippine Offshore Gaming Operations (POGOs) — which operate in the country but offer services to foreign markets — have been linked with money laundering and human trafficking.
Online gambling enterprises, mainly operated by foreigners, have resulted in an influx of Chinese workers in the country, many of them without working permits.
The Senate Blue Ribbon Committee, chaired by Senator Richard Gordon, is now investigating the flow of foreign cash brought to the country.
According to Gordon, a suspiciously large amount of foreign currency amounting to $470 million was brought in by 47 individuals from September 2019 to February, without being flagged as an apparent money laundering scheme. Nearly half of the bounty was allegedly brought in by Chinese individuals.
“This is very alarming. We do not know where this money came from and where they are bringing it,” he said in a privilege speech on Tuesday, arguing that the money could allow syndicates to thrive and perpetuate criminality, providing fuel “for drug dealers, terrorists, illegal arms dealers, human traffickers, smugglers, corrupt officials and others to operate and expand their criminal enterprises.”
He added: “In extreme cases, it can be used to fund armies or a coup d’etat that could lead to a takeover of the government.”
Gordon described money laundering as a “threat to national security” and the economy, “because it can cause artificial inflation.”
Senator Leila De Lima on Tuesday warned that “the continued presence of Chinese gambling firms will do more harm than good not only to the economy of the country but also to the moral, social and cultural norms that Filipinos have kept sacred.”
The operations, she argued, “are fast transforming our society into a cesspool of vice and criminality for Chinese citizens,” she said, mindful of an increasing number of crimes involving Chinese nationals, especially among POGO workers.
In a recent inquiry, the Senate Committee on Women, Children, Family Relations and Gender Equality, chaired by Sen. Risa Hontiveros, exposed a new money-making scheme that facilitates the entry of Chinese nationals into the Philippines for 10,000 Philippine pesos ($200).
“It is about time we face this Chinese threat head-on before it is too late,” the senator said.
The investigation also revealed a growth of prostitution dens catering to Chinese nationals from POGO companies.
Hontiveros has urged authorities to “trace all criminal elements and blacklisted fugitives who have entered the country” through the POGO industry. “Deport these criminals. Filipinos’ safety comes first,” she said, adding: “POGO is a big mess ... POGO brings in crimes.”
