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The Philippine gaming industry has faced increasing compliance demands in recent years, even after its removal from the Financial Action Task Force’s (FATF) grey list. As regulators tighten oversight, operators are seeking innovative solutions to strengthen their compliance frameworks.

Chuan Wee Lye, a senior business development manager at Sumsub, a full-cycle verification platform, told AGB that improving compliance is crucial to maintaining industry stability.

“Leaving the grey list is just the first step. Operators must continuously enhance their Know Your Customer (KYC) and Anti-Money Laundering (AML) practices to ensure the sector remains aligned with national regulatory expectations,” said Chuan Wee Lye.

The Philippines successfully exited the FATF’s grey list in February 2025, after being added in June 2021. This exit is partially attributed to the country’s ban on Philippine Offshore Gaming Operators (POGOs), which came into effect at the end of 2024.

While the industry welcomed the Philippines’ exit from the grey list, the recent Philippine Senate proposal to review the Philippine Inland Gaming Operators (PIGO) sector has introduced new uncertainties. This review aims to assess potential societal harms associated with the sector, adding further complexity to the country’s gaming industry landscape.

In an interview during the 2025 ASEAN Gaming Summit in Manila, Chuan Wee Lye emphasized the importance of technology in enhancing security. “Technology-driven compliance solutions are essential for detecting suspicious activities early and ensuring operators stay ahead of regulatory changes,” he added.

The grey list designation highlighted vulnerabilities in the Philippine gaming sector, particularly concerns about unregulated operators junkets. While measures like the POGO ban were implemented, experts stress that a more structured approach, leveraging technology, is vital for long-term improvements.

PAGCOR’s enhanced KYC and AML measures

Chuan Wee Lye observed that the Philippine Amusement and Gaming Corporation (PAGCOR) has made significant strides in compliance to meet regulatory standards. He believes they are likely to adopt more effective strategies to enhance KYC and AML processes in the future.

“KYC systems are instrumental in preventing underage access to gambling platforms,” Chuan Wee Lye explained. “We’ve seen stricter controls implemented in regions like the UK, and the Philippine market is now following this trend.” He further emphasized that advanced KYC tools, incorporating automated identity verification and biometric checks, significantly improve customer onboarding and provide enhanced security.

Simultaneously, data analytics-driven AML solutions are gaining traction within the Philippine gaming industry. By analyzing customer behavior patterns, operators can effectively detect suspicious activities and mitigate money laundering risks. “Some industry players are already leveraging data analytics to identify unusual patterns,” Chuan Wee Lye noted. “Operators investing in these technologies are better positioned to manage risks and prevent fraudulent behavior.”

Digiplus leading the way in compliance innovation

Digiplus, the Philippines’ largest online gaming operator, has emerged as a leader by proactively adopting advanced compliance measures. When asked about its compliance efforts, Chuan Wee Lye said, “Digiplus is a leader in the sector, using data analytics to identify risk patterns and improve customer protection.”

“They’ve been investing in these systems well ahead of recent regulatory changes,” he added.

Digiplus has also partnered with fintech firms to integrate secure payment solutions and improve customer data security, reinforcing its commitment to compliance innovation.

Regulatory guidance from the financial sector

The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, recently released draft guidelines for digital marketplace activities, which include a prohibition on banks and electronic money issuers (EMIs) offering products linked to gambling, such as online casinos and betting.

Chuan Wee Lye notes that the BSP possesses significantly more comprehensive and advanced regulatory expertise than PAGCOR, the country’s gaming regulator.

He further explained that the BSP’s regulations extend to the gaming industry, implying that changes initiated by the central bank could potentially influence PAGCOR’s regulatory framework.

Furthermore, he noted that the BSP’s recent Anti-Financial Scamming Act (AFASA) demonstrates the Philippine financial regulator’s commitment to mitigating the risk of scam-related crimes utilizing banking channels.