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Ukraine completes questionnaire for EU membership — official

REUTERS

Ukraine has completed a questionnaire which will form a starting point for the European Union to decide on membership for Kyiv, Ihor Zhovkva, deputy head of President Volodymyr Zelenskyy’s office, said. 

European Commission (EU) President Ursula von der Leyen handed the questionnaire to Mr. Zelenskyy during her visit to Kyiv on April 8th, pledging a speedier start to Ukraine’s bid to become a member of the EU following Russia’s invasion of the country. 

“Today, I can say that the document has been completed by the Ukrainian side,” Mr. Zhovkva told the Ukrainian public broadcaster Sunday evening. 

The European Commission will need to issue a recommendation on Ukraine’s compliance with the necessary membership criteria, he added. 

“We expect the recommendation … to be positive, and then the ball will be on the side of the EU member states.” 

Mr. Zhovkva added that Ukraine expects to acquire the status of a candidate country for EU accession in June during a scheduled meeting of the European Council meeting. 

The European Council is to meet June 23–24, according to the Council’s schedule on its website. 

“Next, we will need to start accession talks. And once we hold those talks, we can already talk about Ukraine’s full membership in the EU,” Mr. Zhovkva said. — Reuters

Global Citizen seeks up to $1B for six sustainable ‘Impact’ funds

LONDON — Global Citizen, an international non-profit aiming to help end poverty, said on Monday it plans to launch six funds of up to $1 billion each focused on generating environmental and social impact in the developing world. 

The Global Citizen Impact Funds aim to help plug a large gap in funding for poorer countries struggling to meet the United Nations 2030 Sustainable Development Goals, which include providing access to clean water and fighting climate change. 

The world’s poorest countries need close to $400 billion annually in external finance to meet those goals, but currently get only a fraction of that, Global Citizen’s Chief Policy Officer Mick Sheldrick told Reuters. 

To help drive faster change, Global Citizen said its funds, created with partner NPX, would bring together philanthropists and investors using a financing model that it believes would prove scaleable quickly. 

It hopes to start raising donor money over the next six to nine months and is targeting at least $25 million for each fund, although most of the NGOs chosen to receive funding could scale quickly and absorb up to $1 billion in donor money. 

Under the model, investors, primarily funds with impact mandates, would give money to the NGO to help it expand its services, with the aim of hitting certain targets. If successful, and after the results have been independently verified by a third-party, the Global Citizen fund in question would release donor money to the NGO, to repay the investors. 

Through the process, the investors would receive a return on their capital of around 5–6%, the NGO would get an incentivization payment, while the donors would have the assurance that they would fund only initiatives that worked. 

“We really think it has the potential to be a groundbreaking outcomes-fund vehicle that could transform philanthropy,” Mr. Sheldrick said. “Our hope would be that it could, over time, lead to an upsurge in the amount of philanthropic capital that is available for SDG-related programs.” 

The NGOs selected include One Acre Fund, which supports smallholder farmers in Africa around climate action, including through planting and protecting more trees. 

Its target would be to support the survival of 44 million trees planted over four years, leading to 7.4 million tonnes of carbon being sequestered. If successful, the plan could scale to more than 1 billion trees over the next decade. 

The other funds will focus on detecting and treating malaria; improving literacy and numeracy for children in crisis settings; providing access to clean water; lifting marginalized women out of poverty; and improving food security. — Reuters

Shanghai targets lockdown turning point by Wednesday — sources

REUTERS

SHANGHAI — Shanghai has set a target to stop the spread of coronavirus disease 2019 (COVID-19) outside of quarantined areas by Wednesday, two people familiar with the matter said, which would allow the city to further ease its lockdown and start returning to normal life as public frustrations grow.

The target will require officials to accelerate COVID testing and the transfer of positive cases to quarantine centers, according to a speech by a local Communist Party official dated Saturday, a copy of which was seen by Reuters.

Ending community-level transmission has been a turning point for other Chinese localities that locked down, such as Shenzhen city which last month reopened public transport and let businesses go back to work shortly after achieving that target.

Shanghai has become the epicenter of China’s largest outbreak since the virus was first identified in Wuhan in late 2019, and has recorded more than 320,000 COVID infections since early March when its surge began.

Frustrated Shanghai residents have taken to social media to vent their anger at local authorities over difficulties sourcing food, lost income, separated families and poor conditions at central quarantine centers. Tensions have on occasion erupted into public protests or scuffles with police.

The Chinese economy and global supply chains are also feeling pinched by shuttered factories and transport bottlenecks in many parts of China hit by COVID-19 curbs.

Shanghai has already taken piecemeal steps to ease restrictions. State TV reported on Sunday that some supermarkets had reopened their doors to shoppers, although many residents expressed disbelief in social media postings. A Shanghai government-backed social media account said it was in one district in the outskirts.

TURNING POINT 

Shanghai’s new target of “zero-COVID at the community level” by April 20 was communicated in recent days to the city’s Communist Party cadres and organizations such as schools, according to the sources, who declined to be named as the information was not public.

China’s definition of zero-COVID status at the community level means that no new cases emerge outside quarantined areas.

A speech dated Saturday by the party secretary of the city’s Baoshan district described it as an order that had come as the city’s situation reached a “critical moment,” with growing public anxiety and food supply pressures.

“The State Council Working Group, the municipal party committee and municipal government have asked that the turning point of the epidemic should appear on the 17th and that zero-COVID status should be reached on the 20th,” Chen Jie said in the speech.

The Shanghai government and China’s State Council did not immediately respond to requests for comment. The Baoshan district government could not be reached by phone outside working hours on Sunday.

“This is a military order, there is no room for bargaining, we can only grit our teeth and fight for victory. It can also be said this is a total attack, a last-ditch battle to reverse the trend of the epidemic,” the speech said.

One Shanghai resident told Reuters her neighborhood committee sent out a notice on Sunday to residents that more workers and buses had been mobilized to speed up the transfer of positive cases in their compound to quarantine centers.

Images and videos circulated on Chinese social media on Saturday evening showed numerous buses lined up to take away long lines of people who users said had tested positive for COVID outside a town in Shanghai’s eastern Pudong district. Reuters was unable to verify the authenticity of the posts.

Of 23,643 new local infections Shanghai reported for Saturday, 722 were found outside quarantined areas, according to Wu Jinglei, director of Shanghai’s health commission. He told a news conference on Sunday that the figure had declined in the past two days.

BUSINESSES REOPENING 

China’s “dynamic clearance” approach to COVID control requires authorities to centrally quarantine all cases and isolate their close contacts.

Beijing authorities intervened in Shanghai in early April, after the financial hub failed to isolate COVID-19 despite locking the city down in stages. Chinese President Xi Jinping has insisted that China must not relax coronavirus measures, and must stick to an elimination approach.

Shanghai started locking down areas east of the Huangpu river on March 28, and extended the lockdown citywide on April 1. While it eased movement curbs on some residents last week, most businesses remain shut and public transport is suspended.

Business leaders have been increasingly outspoken about the toll of the lockdowns on the Chinese economy, with automakers warning they could be forced to stop production completely if their suppliers in Shanghai and neighboring areas could not resume work soon.

On Friday, China’s industry regulator said it had identified 666 companies in Shanghai in the semiconductor, automobile and medical sectors as priority firms that needed to resume work.

Late on Saturday, Shanghai authorities provided guidance on what measures firms should take to restart production in the city, such as stocking up on medical supplies and submitting COVID prevention plans for their factories.

Reuters has reported that Tesla is preparing to reopen its Shanghai factory on April 18.

SAIC Motor Corp, the Chinese partner of Volkswagen and General Motors, has said it is preparing to resume production and will start carrying out “stress tests” on Monday. — Reuters

Myanmar junta says 1,600 prisoners to be freed in holiday amnesty — sources

Police fire a water cannon at protesters rallying against the military coup and to demand the release of elected leader Aung San Suu Kyi, in Naypyitaw, Myanmar, Feb. 9, 2021. — Reuters/Stringer

Relatives of hundreds of prisoners gathered outside Myanmar’s Insein Prison on Sunday after the military government announced the release of 1,600 prisoners in an amnesty to mark the Southeast Asian nation’s new year. 

The number of prisoners released in the annual amnesty was a fraction of last year’s 23,000. It was unclear whether it would include jailed members of the civilian government overthrown in a Feb. 1, 2021, coup. 

A local reporter on the scene told Reuters that no political protesters had been released so far from Insein. 

Lieutenant General Aung Lin Dwe, a state secretary of the junta, signed a statement announcing “1,619 prisoners, including 42 detained foreigners, will be released under the Amnesty as part of the celebration of Myanmar’s new year, to bring joy for the people and address humanitarian concerns.” 

The military has arrested at least 13,282 people and killed 1,756 opponents since the coup, according to the Assistance Association of Political Prisoners (AAPP) activist group. 

Among those detained are the ousted government’s leader, Nobel laureate Aung San Suu Kyi, being held in the capital Naypyidaw, and her Australian economic adviser, Sean Turnell, who is in the Insein facility on the outskirts of Yangon. 

“The junta uses the political prisoners as hostages,” an AAPP spokesman told Reuters on Sunday. A spokesman for the junta, which has disputed AAPP’s figures, did not respond to a request for comment. 

Standing near plainclothes police on Sunday, nervous-looking families held placards with names of their loved ones, said the local reporter, who asked not to be named for security reasons. 

The mother of a 22-year-old protester arrested eight months ago told the reporter she was waiting outside Insein after her son wrote saying he might be released in an April amnesty. 

Another mother, whose police officer son was arrested in June for participating in the Civil Disobedience Movement against the junta, said she had waited outside the prison several times during previous amnesty periods. 

“I have a feeling he will be freed today,” she added, asking not to be named for fear of retaliation, the reporter said. — Reuters

[B-SIDE Podcast] Compassion in the workplace

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Creating a compassionate workplace starts at the top. In this B-Side episode, Vidya Srinivasan, vice president for Procter and Gamble’s Manila Global Business Services and Global External Reporting, explains to BusinessWorld reporter Patricia B. Mirasol how the multinational corporation embraces diversity and inclusion.

TAKEAWAYS

Leadership sets the tone. 

It’s the leadership that determines how compassionate and empathetic a workplace is.

“The leadership sets the tone… The tone at the top will tremendously help push programs,” said Ms. Srinivasan.

To foster an inclusive and supportive atmosphere, P&G has affinity networks — which connect employees based on similar interests or diversity aspects — such as GABLE (which stands for Gay, Ally, Bisexual, Lesbian, and Transgender Employees).

Its “Share the Care” policy, meanwhile, grants new parents at least eight weeks of fully paid leave (compared to the seven days of paternal leave mandated in the Philippines).

These efforts would be difficult to implement without the support of P&G’s top brass.

Mentors pave the way for future leaders. 

To grow, employees should seek out mentors as Ms. Srinivasan did.  Mentorship need not have a formal structure,  she added.

“You can tap someone’s shoulder and ask, ‘Can you be my mentor?’ Informal networking also helps a lot.”

Compassion is quantifiable through feedback. 

To gauge if its programs and policies are working, P&G conducts annual surveys.

“Feedback … defines the action plan,” said Ms. Srinivasan.

These surveys helped P&G “walk the talk” in closing the gender ratio gap which led to P&G being named Champion for the Gender Inclusive Workplace category in the 2021 UNWEP (United Nation’s Women’s Empowerment Principles) Awards. The organization has a gender ratio of 53% female and 47% male. In the senior management levels, the numbers are 54% female, 46% male.

Work-life balance solutions have to be flexible.

The aforementioned “Share the Care” policy also allows for flexibility: a parent chooses how to spend those eight weeks of parental leave — whether in a single go, or spread out — depending on their situation.

“[Flexibility] empowers our employees to be in the driver’s seat and drive balance in their lives,” said Ms. Srinivasan.

Situational mentoring sessions also acknowledge that each employee is unique.

To address traditional biases, include men in the conversation. 

“You can’t have this journey with only half the people,” Ms. Srinivasan pointed out.

P&G was able to turn their male employees into allies by facilitating workshop sessions, which turned into dialogues, and, eventually, action plans.

“There were many a-ha moments, as everyone started seeing from a different set of eyes,” Ms. Srinivasan said. “Acknowledgement is the first step.”

Recorded remotely in March 2022. Produced by Earl R. Lagundino and Sam L. Marcelo.

Follow us on Spotify BusinessWorld B-Side

UP-CIFAL Philippines leads the exploration of the presidential candidates’ governance agenda highlighting the UNSDGs

The University of the Philippines-Centre International de Formation des Autorités et Leaders or the International Center for Authorities and Leaders Philippines (UP-CIFAL Philippines), together with the UP System Public Affairs, invites you to “Leaders in Focus: Embedding Sustainable Development in the Governance Agenda of Candidates” on April 28, 2022 (Thursday) at 12:00 noon.

With the 2030 Agenda for Sustainable Development, local and national governments are responsible for context- and culture-specific integration of the 17 Sustainable Development Goals (SDGs) in national and local policies and strategies. Beyond being the implementer of the SDGs in the country, the United Nations (UN) also recognizes the national government as the catalyst for sustainable development and nation-building.

As the upcoming 2022 Philippine elections draw nearer, it is vital to provide an avenue to the country’s future leaders and elevate the discourse on their plans and prospects in relation to achieving the SDGs, reaching the furthest, and leaving no one behind.

“Leaders in Focus” brings in six presidential candidates to contribute to this goal through an insightful session. This public forum provides candidates a platform to expound on their SDG agenda and how they aim to promote and attain the targets of these goals in their leadership.

This event is free and open to the public via the official TVUP YouTube channel (www.youtube.com/TVUPph). You may also watch through the University of the Philippines YouTube channel (www.youtube.com/UniversityofthePhilippines1908) and UP-CIFAL Philippines YouTube channel (www.youtube.com/CIFALPhilippines).

 


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Filipino Fund, Inc. announces schedule of stockholders’ meeting

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URC discloses annual meeting of stockholders on May 11

UNIVERSAL ROBINA CORPORATION

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

MAY 11, 2022

1:00 P.M.

Notice is hereby given that the Annual Meeting of the Stockholders of UNIVERSAL ROBINA CORPORATION (the “Corporation”) will be held on Wednesday, May 11, 2022 at 1:00 P.M. in accordance with the relevant provisions of the By-Laws of the Corporation which allows meetings of the stockholders to be conducted by remote communication, subject to such guidelines as may be promulgated by the Securities and Exchange Commission.

Stockholders may view the livestream of the Meeting and download the Information Statement at the following web addresses:

The Agenda for the Meeting is as follows:

  • Proof of notice of the meeting and existence of a quorum.
  • Reading and approval of the Minutes of the Annual Meeting of the Stockholders held on May 13, 2021.
  • Presentation of annual report and approval of the financial statements for the preceding year.
  • Election of Board of Directors.
  • Appointment of External Auditor.
  • Ratification of the acts of the Board of Directors and its committees, officers, and management.
  • Consideration of such other matters as may properly come during the meeting.
  • Adjournment.

Only stockholders of record of the Corporation as of April 4, 2022 shall be entitled to vote.

Stockholders may cast their votes on or before May 4, 2022 on all matters requiring approval by: (a) accomplishing and submitting the proxy form; or (b) voting in absentia.

The procedures for attending the meeting via remote communication, submission of proxies, and for voting in absentia are explained in the Information Statement.

Proxies shall be sent via email to corporate.secretary@urc.com.ph or hard copies to the Office of the Corporate Secretary, 40F Robinsons Equitable Tower, ADB Avenue cor. Poveda Road, Ortigas Center, Pasig City. Validation of proxies shall be held on May 6, 2022. We are not soliciting proxies.

By Authority of the Chairman

By Authority of the Chairman

(signed)

MARIA CELIA H. FERNANDEZ-ESTAVILLO
Corporate Secretary

 

 


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Altus Property Ventures, Inc., Robinsons Land Corp. and RL Commercial REIT, Inc. issue notice of annual stockholders’ meeting on May 12

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
MAY 12, 2022

Notice is hereby given that the Annual Meeting of the Stockholders of the following companies (the “Companies”) will be held on May 12, 2022 at the time and place as stated below. In light of current conditions and in support of the efforts to contain the outbreak of COVID-19, stockholders may only attend the meetings via remote communication at the livestream links specified below:

www.robinsonsland.com/DIS2022
https://bit.ly/RLC_ASM2022
www.rlcommercialreit.com.ph/DIS2022
https://bit.ly/RCR_ASM2022
www.altuspropertyventures.com.ph/DIS2022
https://bit.ly/APVI_ASM2022

The Agenda for the meeting of Robinsons Land Corporation is as follows:

1. Proof of notice of the meeting and existence of a quorum
2. Reading and approval of the Minutes of the Annual Meeting of the Stockholders held on May 13, 2021
3. Presentation of annual report and approval of the financial statements for the preceding year
4. Amendment of Article II of the Articles of Incorporation
5. Election of Board of Directors
6. Appointment of External Auditor
7. Ratification of the acts of the Board of Directors and its committees, officers and management
8. Consideration of such other matters as may properly come during the meeting
9. Adjournment

The Agenda for the meeting of RL Commercial REIT, Inc. is, as follows:

1. Proof of notice of the meeting and existence of a quorum
2. Presentation of annual report and approval of the financial statements for the preceding year
3. Election of Board of Directors
4. Appointment of External Auditor
5. Ratification of the acts of the Board of Directors and its committees, officers and management
6. Consideration of such other matters as may properly come during the meeting
7. Adjournment

The Agenda for the meeting of Altus Property Ventures, Inc. is, as follows:

1. Proof of notice of the meeting and existence of a quorum
2. Reading and approval of the Minutes of the Annual Meeting of the Stockholders held on May 13,
2021
3. Presentation of annual report and approval of the financial statements for the preceding year
4. Election of Board of Directors
5. Appointment of External Auditor
6. Ratification of the acts of the Board of Directors and its committees, officers and management
7. Consideration of such other matters as may properly come during the meeting
8. Adjournment

The Information Statements of the Companies which contain more details regarding the rationale and explanation for each of such agenda items may be viewed or downloaded at the web addresses indicated above. Stockholders intending to participate via remote communication must notify the Companies by email on or before May 4, 2022 at the corresponding email addresses indicated in the Information Statements of each Company.

Stockholders who wish to cast their votes may do so via the method provided for voting in absentia, or by accomplishing the proxy form. The procedures for attending the meeting via remote communication and for casting votes in absentia are explained further in the Information Statements.

Shareholders who wish to vote by proxy shall send the proxies via email to the corresponding email addresses indicated in the Information Statement of each Company or hard copies to the Office of the Corporate Secretary, 12/F Robinsons Cyberscape Alpha, Sapphire and Garnet Roads, Ortigas Center, Pasig City, not later than May 4, 2022. Validation of proxies shall be held on May 6, 2022. We are not soliciting proxies.

Only stockholders of record of the Companies as of April 4, 2022 shall be entitled to vote at the respective meetings.

By Authority of the Chairman

(sgd.)

JUAN ANTONIO M. EVANGELISTA
Corporate Secretary

 


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JG Summit Holdings, Inc.’s annual stockholders’ meeting to be held on May 13

JG SUMMIT HOLDINGS, INC.

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

MAY 13, 2022 • 11:00 a.m.

Notice is hereby given that the Annual Meeting of the Stockholders of JG SUMMIT HOLDINGS, INC. (the “Corporation”) will be held on May 13, 2022 at 11:00 a.m. in accordance with the relevant provisions of the By-Laws of the Corporation which allows meetings of the stockholders to be conducted by remote communication, subject to such guidelines as may be promulgated by the Securities and Exchange Commission.

Stockholders may view the livestream of the Meeting and download the Information Statement at the following web addresses:

The Agenda for the meeting is as follows:

  • Proof of notice of the meeting and existence of a quorum.
  • Reading and approval of the Minutes of the Annual Meeting of the Stockholders held on May 14, 2021.
  • Approval to amend Article Sixth of the Amended Articles of Incorporation of the Corporation in order to reduce the number of seats in the Board of Directors from eleven (11) to nine (9).
  • Presentation of annual report and approval of the financial statements for the preceding year.
  • Election of Board of Directors.
  • Appointment of External Auditor.
  • Ratification of the acts of the Board of Directors and its committees, officers and management.
  • Consideration of such other matters as may properly come during the meeting.
  • Adjournment.

Stockholders may cast their votes on or before May 5, 2022 on all matters requiring approval by: (a) accomplishing and submitting the proxy form; or (b) voting in absentia.

Proxies shall be sent via email to corporate.secretary@jgsummit.ph or hard copies to the Office of the Corporate Secretary, 40F Robinsons Equitable Tower, ADB Avenue cor. Poveda Road, Ortigas Center, Pasig City. Validation of proxies shall be held on May 10, 2022. The procedures for attending the meeting via remote communication, submission of proxies, and for voting in absentia are explained in the Information Statement.

Only stockholders of record of the Company as of April 4, 2022 shall be entitled to vote. We are not soliciting proxies.

By Authority of the Chairman

By Authority of the Chairman

(signed)

MARIA CELIA H. FERNANDEZ-ESTAVILLO
Corporate Secretary

 

 


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BSP to tweak rules on large exposures

STOCK PHOTO | Image Dmitry Berdnyk from Unsplash

THE PHILIPPINE central bank is proposing to amend the guidelines on large exposures for big banks and their subsidiaries, in an effort to improve credit concentration risk management.

The Bangko Sentral ng Pilipinas’ (BSP) proposed circular also outlines the regulatory reporting requirements for banks under the large exposures framework to ensure that risks will be properly monitored.

“BSP-supervised financial institutions (BSFIs) are expected to properly and accurately identify, measure, monitor, and control large exposures across books and operations in order to protect BSFIs’ solvency from maximum losses resulting in sudden counterparty failure,” the draft circular posted on the BSP website stated.

Under the proposed rules, an exposure is considered a large exposure if it is equal to or higher than 10% of a bank’s eligible capital.

“Large exposures shall refer to exposures to a counterparty or a group of connected counterparties equal to or greater than 10% of covered banks/quasi banks’ Tier 1 capital,” the rules read.

This is a change from the previous definition of large exposure which was 5% of a lender’s qualifying capital.

Tier 1 capital is defined as the core capital of a lender, which includes its disclosed reserves and equity capital. Meanwhile, the qualifying capital is part of Tier 2 which is a supplementary capital for banks.

The framework will be applicable for universal and commercial banks as well as their subsidiary lenders and quasi-banks.    

The large exposure framework for universal banks and their subsidiaries will be implemented by Jan. 1, 2024, based on the transitory provision of the circular.

Stakeholders are given until April 29 to submit feedback on the draft regulation to the BSP.

The circular also set the criteria in assessing the economic interdependence of counterparties that have borrowings with banks to ascertain large exposure.

The BSP said banks should monitor whether 50% or more of a counterparty’s annual gross receipt or gross expenditure came from transactions with the other party. 

Lenders should also look into whether the financial difficulties, insolvency, or default of one counterparty could in turn spill over to other counterparties in terms of repayments of liabilities.

The central bank said lenders should also assess the funding source of counterparties and if there are no alternative provider of funds that could support the counterparties in case of a default from the major funding source.

“In cases where the criteria do not automatically imply an economic dependence that results in two or more counterparties being connected, covered banks shall provide evidence to the BSP that a counterparty which is economically dependent to another, can still pay its liabilities within a reasonable period of time even if the latter’s financial condition weakens,” the BSP said.

Banks are expected to ensure they have the monitoring and reporting requirements related to their large exposures at any given time it will be verified by the BSP. These large exposures will be reported on a semi-annual basis or every June 30 or Dec. 31 of each year.

The BSP has stressed the banking system remained stable and well-capitalized despite the deterioration in banks’ asset quality amid the pandemic. It attributed this to the regulatory reforms that were implemented following the Asian Financial Crisis and the Global Financial Crisis.  Luz Wendy T. Noble

Banks need to keep close eye on play-to-earn game transactions, AMLC says

A customer plays a game at a computer shop in Quezon City, Sept. 2, 2020. — PHILIPPINE STAR/ MICHAEL VARCAS

THE ANTI-MONEY Laundering Council (AMLC) wants financial institutions to ensure customer due diligence, especially those that serve as payment channels for play-to-earn games such as Axie Infinity.

While Axie Infinity itself is not under the supervision of the Bangko Sentral ng Pilipinas (BSP) and not covered by the “dirty money” watchdog, AMLC Executive Director Mel Georgie B. Racela stressed that financial institutions are involved when players convert in-game tokens into fiat currency.

In games such as Axie Infinity, players receive cryptocurrency in exchange for playing the game. Axie Infinity players earn tokens known as smooth love potion (SLP).

“The payment channels used for the SLP tokens used in the game may include banks and electronic money issuers (EMIs). It must be remembered that banks and EMIs are covered persons and are, thus, required to conduct customer due diligence, keep records, and file covered and suspicious transaction reports (STRs),” Mr. Racela said in a Viber message.

“These covered persons, as payment and settlement facilitators, should closely monitor funds that pass through them (through the purchase or sale of such tokens) for possible links to dirty money and promptly file the corresponding STRs when appropriate,” he added.

Around $600 million worth of cryptocurrency linked to Axie Infinity was stolen from the Ronin Network, a blockchain network that allows users to transfer crypto in the game. It is said to be one of the largest cryptocurrency heists on record.

The US Federal Bureau of Investigation last week said their findings showed that Lazarus Group and APT38, both associated with North Korea, were behind the cybercrime. The Lazarus Group was also involved in hacking the Bangladesh central bank in 2016.

Meanwhile, Swarup Gupta, an industry manager at the Economist Intelligence Unit said the cyberattack showed how there are still gaps in ensuring decentralization for such platforms.

“The small number of validator nodes for the Ethereum sidechain, Ronin, and the even smaller number needed to approve a transaction, shows how such platforms fail to deliver the levels of decentralization that are necessary to ensure sufficient levels of cybersecurity,” Mr. Gupta said in an e-mail.

Sky Mavis, which operates Axie Infinity, earlier said that about 35% of the game’s traffic comes from the Philippines. The company said it raised $150 million in funds which will be used to reimburse players that were affected by the heist.

Despite regulators issuing warnings on risks related to cryptocurrency, Mr. Gupta said gamers have remained “largely undeterred.”

He earlier said the interest for play-to-earn games rose as Filipinos sought new sources of income amid the pandemic.

“Authorities should reach out to gaming guilds in the country and coordinate with them to provide education about the risks inherent with play-to-earn gaming activity,” Mr. Gupta said.

“They should also consider imposing restrictions on the transactions of gamers at the point of conversion to fiat currency since this is an area that is within the government’s jurisdiction,” he added.

BSP Governor Benjamin E. Diokno previously said they are continuously monitoring crypto-related activities that are used in online games. He said they are discussing with other regulators on the appropriate approach for Axie Infinity and other gaming platforms.

The Philippines is under increased monitoring as it was included in the “gray list” of the Financial Action Task Force in June 2021. It needs to prove it has implemented tighter restriction measures to prevent dirty money and terrorism financing activities.

The government hopes to exit the gray list on or before January 2023. — Luz Wendy T. Noble