Philippines Central Bank Proposes New Daily Limits for Online Gambling Payments
Introduction to Proposed Limits
The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has introduced a draft circular aimed at regulating financial transactions related to online gambling. This new policy targets digital payments and suggests capping the daily transfer amounts to online gambling platforms in an effort to address social and financial risks.
Details of the Proposed Payment Restrictions
Under the draft circular, the BSP recommends that transfers to online gambling sites be capped at no more than 20% of the average daily balance in a user’s transaction account. Payment service providers (PSPs) will be mandated to automatically decline any transaction requests exceeding this limit.
Furthermore, all PSPs and payment system operators offering or planning to offer services related to online gambling will be required to secure prior approval from the BSP. To qualify, these providers must adhere to specific standards set forth by the central bank, including comprehensive anti-money laundering and counter-terrorism financing controls.
Measures to Encourage Responsible Gambling
The BSP also proposes the introduction of a “heavy usage” threshold for gambling-related payments. When users reach this predetermined limit, a compulsory 24-hour cooling-off period will be enforced during which further transactions are blocked. During this period, users will receive mandatory pop-up notifications warning about potential risks and promoting responsible gambling.
Additional proposed safeguards include prohibiting financial institutions from offering loans linked to e-wallets associated with online gambling accounts. Moreover, digital payment platforms would be disallowed from showing online gambling advertisements unless users choose to opt in. Employees of financial institutions will also be banned from participating in any form of online gambling.
Context and Public Feedback
The BSP emphasizes the importance of preventing the misuse of digital payment systems for activities that could harm users socially and financially. The draft circular is open for public comments through July 25. This move responds to concerns raised by community leaders and lawmakers about the increasing availability and promotion of online gambling, which is linked to addiction and financial difficulties, especially among low-income individuals.
Broader Regulatory Environment
This proposal is part of wider regulatory discussions in the Philippines concerning the gambling sector. Recent legislative suggestions include a potential ban on the use of e-wallets for betting and other stringent online gambling regulations being considered by the Philippine Senate.
Should the draft be finalized, any BSP-regulated institution wishing to facilitate payment services for online gambling must first obtain BSP authorization. Requirements include a minimum capitalization of ₱300 million (about $5.29 million) and the establishment of advanced systems to control risks linked to money laundering and fraud. These entities will have six months from the policy’s effective date to comply and secure the necessary permits.