TLDR
- PAGCOR has tightened its probity check system after the Philippines left the FATF grey list in February 2025.
- The checks are tied to FATF Recommendation 28, which keeps criminals out of casino ownership and management.
- Reviews are split into three tiers based on risk level, from basic checks to enhanced third-party screening.
- Licensed entities must report ownership or board changes to PAGCOR within 15 days.
- Most checks finish within 30 days, but missing paperwork can delay approval or lead to license suspension.
PAGCOR has made its probity check process a bigger part of how it runs the gaming industry. This comes after the Philippines was removed from the Financial Action Task Force grey list. The update was reported by gaming law firm Arden Consult.
Probity checks look into the background of people and companies applying for casino licenses. They are meant to stop criminals or their associates from owning or managing gambling businesses.
Why The Checks Matter Now
Arden Consult said the checks are part of the country’s commitment to anti-money-laundering rules. FATF Recommendation 28 requires regulators like PAGCOR to screen casino owners and managers.
The Philippines was placed on the FATF grey list before reform efforts led to its removal in February 2025. Arden said that milestone helped build trust in the financial system.
Probity checks are now one of the tools PAGCOR uses to protect that progress. The firm said this makes the checks more than just paperwork.
A probity check can be triggered in several situations. These include new or renewed license applications, changes to a company’s board or ownership, and reports of wrongdoing.
Licensed companies must tell PAGCOR in writing about changes to their board, officers, or ownership. They have 15 days to do this after the change happens.
Arden said missing that deadline can raise concerns on its own. Companies are expected to stay on top of these reporting rules.
Three Levels Of Review
The checks look at a person’s identity, address, credit history, and financial background. They also include screening against international watchlists for money laundering and terrorism.
There are three levels of review. Level 1 is for low-risk applicants and is handled directly by PAGCOR’s Investigation and Verification Department.
Levels 2 and 3 apply to medium- and high-risk applicants. These reviews are carried out by outside probity checkers approved by PAGCOR, and the applicant pays the cost.
PAGCOR decides which level applies, not the applicant. The decision depends on factors like company size, ownership structure, and past compliance history.
The regulator can also raise the risk level later if new concerns come up. This means a company could face a deeper review even after starting the process.
Arden said fees for these checks must stay fair. Third-party checkers are not allowed to charge extra or random fees for higher-level reviews.
Most checks are completed within 30 days once all paperwork is submitted. The most common reason for delay is missing or incomplete information.
Failing to submit documents or giving wrong information can lead to a rejected application. For companies that already hold a license, this could mean suspension or revocation.
If fraud is found, PAGCOR may take legal action against the company involved. Arden said being upfront with information is better than presenting an inaccurate picture.
Passing a probity check does not guarantee a license on its own. It is one step among several requirements a company must meet to operate legally in the Philippines.
