The Bangko Sentral ng Pilipinas (BSP) has issued a mandate requiring electronic payment providers to strengthen their vetting procedures for merchants using their platforms. The directive aims to curb the prevalence of illegal activities, including fraud and money laundering, that have been facilitated through these digital services.

According to the central bank, an internal investigation revealed that thousands of businesses operating on these payment platforms were not what they claimed to be. Specifically, officials identified numerous online casinos that were masquerading as ordinary retail establishments, such as bakeries and beauty salons. By misrepresenting their business nature, these entities were able to bypass standard security protocols and oversight mechanisms designed to monitor high-risk industries.

Deputy Governor of the BSP emphasized that the primary motivation behind the new requirement is consumer protection. The bank is concerned that the lack of rigorous merchant verification exposes the public to financial fraud and provides a conduit for illicit financial flows. While the central bank has not yet detailed the specific technical requirements for the new vetting process, the mandate signals a shift toward stricter regulatory oversight of the fintech sector to ensure that payment platforms are not being exploited by offshore gaming operators or other unauthorized entities. The move is part of a broader effort by Philippine regulators to tighten control over the digital economy and prevent the misuse of payment infrastructure for illegal gambling operations.