benjamin e diokno : opening remarks - moa signing opening remarks by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the amlc and philippine amusement and gaming corporation ( pagcor ) moa signing, manila, 21 january 2020. * * * ms. andrea d. domingo, chairperson and chief executive officer of pagcor. atty. alfredo c. lim, ms. carmen n. pedrosa, mr. reynaldo e. concordia, and mr. gabriel s. claudio, board members and directors at pagcor. chairman emilio aquino of sec, oic erickson balmes of the insurance commission. atty. mel georgie b. racela, executive director of the anti - money laundering council ( amlc ) secretariat. guests from pagcor and colleagues from the amlc secretariat. good morning. it is my pleasure to welcome you all to today ’ s ceremony as we reinforce the ties between the amlc and pagcor. collaboration among agencies has always proven to be crucial in preventing and countering the abuse of the financial system domestically and globally. the latest national risk assessment notes a high sectoral money laundering threat among designated non - financial businesses and professions — including casinos which are highly vulnerable. similar to banks and other financial institutions, casinos undertake high - volume and high - speed financial activities but in the gaming context. being generally large cash - based businesses, casinos are competitive in its growth and susceptible to criminal activity. with internet - based casinos, casino junket operations, and reduced transparency of high - rollers, there is much vulnerability in identifying sources and movement of funds. thus, this calls for strict enforcement of and compliance to anti - money laundering and counterterrorism financing policies — urging the full cooperation of covered persons during the conduct of examinations — especially with the rise of philippine offshore gaming operators ( pogos ). both the amlc and pagcor appreciate the necessity of close coordination to accomplish the objectives of the anti - money laundering act of 2001, as amended, and the terrorism financing prevention and suppression act of 2012, thus promoting confidence in the integrity of the philippine financial system. with the policy of the state to ensure that the philippines shall not be used as a money laundering and terrorism financing site, the amlc, as the philippines ’ hybrid financial intelligence unit ( fiu ), is mandated to receive and analyze suspicious transaction reports

, and a number of alliances are now under way. let me broadly describe how we would like to see the payment system evolving. some desirable features of payments systems our regulations governing payments systems have to be ownership, institution, and technology neutral so that we encourage the most efficient outcomes. we are more open to experimentation at the early stages of a product or method of service, as will be clear in the soon - to - be - released peer - to - peer lending regulations. at the same time, we have to be more conscious of the risks to stability as innovations catch on and expand. this phased approach is now being called the sand - box approach elsewhere. second, we prefer payment platforms that offer broad based access, rather than those that limit access significantly. we would especially like critical channels to be publicly or widely owned rather than monopolised. bis central bankers ’ speeches third, we would like payment mechanisms to be cheap and scalable, so that they are suited to our economy where ticket sizes are small but transaction volumes huge. an additional desirable element would be for the different payment systems to be interoperable – or at least be able to talk to each other. fourth, we need systems that offer security even to the unsophisticated user, and do not place a huge burden of care on them. this requires greater emphasis on transaction monitoring and identification of suspicious patterns by the system operator, rather than an insistence on ever increasing levels of care by the unsophisticated user. and fifth, we need an effective process of consumer redressal that allows speedy and fair resolution of customer complaints. so long as customers adhere to a reasonable level of care, residual risks should be absorbed by the operator. some recent developments let me now describe some of what has been happening in payments and relate back to our desires. • various payment products and interfaces are now available – internet banking, cards, mobile banking, atms and micro atms, prepaid payment instruments including e - wallets and m - wallets. • remittance facilities through national electronic funds transfer system ( neft ), real time gross settlement system ( rtgs ), immediate payment system ( imps ), instant money transfer ( imt ), etc., most of which can be accessed through multiple channels including net banking, mobile banking, atms and business correspondents. • leveraging on the high mobile density in the country, mobile banking services are being encouraged through interoperable ussd channel