Philippines Central Bank Orders Stricter E-Payment Merchant Vetting

The Bangko Sentral ng Pilipinas is requiring electronic payment providers to implement more diligent vetting of merchants to combat fraud and money laundering. The central bank discovered thousands of illegal businesses operating on these platforms, specifically online casinos that masqueraded as ordinary establishments such as bakeries and beauty salons.

Investigators identified suspicious patterns involving thousands of payments as low as 80 US cents made to unremarkable merchants after midnight. These findings prompted the regulatory shift to ensure that payment gateways are not being used to facilitate illicit financial flows.

Deputy Governor Mamerto Tangonan stated that protecting consumers from scams and theft is essential for the continued expansion of digitalization in the Philippines. He noted that the bank wants to protect consumers from online fraud, illegal activities, and money launderers, arguing that digitalization cannot expand if people's money is being stolen.