Singapore’s parliament has recently undertaken notable measures to amend the Casino Control Act, aiming to strengthen regulatory oversight regarding the origins of player funds. The proposed Anti-Money Laundering and Other Matters Bill, introduced with guidance from the Ministry of Home Affairs, seeks to align local standards with global benchmarks established by the Financial Action Task Force (FATF). This legislative initiative represents a critical shift in ensuring robust due diligence practices within Singapore’s casino sector.
Under the proposed changes, casino operators such as Resorts World Sentosa and Marina Bay Sands will face expanded responsibilities. They will be required to conduct thorough due diligence on transactions exceeding SGD 4,000, a reduction from the previous threshold of SGD 5,000. This adjustment highlights Singapore’s proactive stance in combatting money laundering, terrorism financing, and proliferation financing risks, as defined by FATF guidelines. By lowering the transaction threshold, authorities aim to enhance the detection and prevention of illicit financial activities.
The Gambling Regulatory Authority (GRA)of Singapore will play a pivotal role in enforcing these amendments. By implementing stringent compliance measures and conducting regular audits, the GRA aims to uphold the integrity of Singapore’s casino operations. This approach is crucial in mitigating the moderate risks associated with international player participation and ensuring adherence to international AML/CFT standards. Enhanced compliance strategies will involve close monitoring of casino transactions, rigorous background checks on high-risk individuals, and the use of advanced analytics to identify suspicious activities.
Recent reports have underscored the need for enhanced regulatory scrutiny within Singapore’s casinos. While the city-state is known for its robust legal framework, authorities remain vigilant against potential money laundering activities. Notably, Singapore’s enforcement agencies have addressed cases involving the conversion of criminal proceeds into casino chips, illustrating the ongoing challenges and proactive measures taken to safeguard financial integrity. These case studies emphasize the necessity of continuous improvement in regulatory practices and the importance of collaboration between casinos and law enforcement agencies.
Singapore is committed to further strengthening its AML/CFT regime. Insights gained from recent enforcement actions, including high-profile money laundering cases, will inform future regulatory enhancements. By refining compliance frameworks and leveraging technological advancements, Singapore aims to maintain its reputation as a global leader in financial transparency and regulatory excellence within the casino industry.
Singapore’s Gambling Regulatory Authority (GRA) has announced a significant reduction in the cash deposit amount that triggers customer due diligence checks for casino clients. According to a recent report by the Singapore-based news outlet CNA, the threshold for such scrutiny will be lowered from SGD 5,000 to SGD 4,000 (approximately USD 2,950) in both of the city’s casinos.
While the new regulations are set to be implemented this year, the exact date has not been disclosed by the authorities. This initiative is part of a broader effort to enhance the anti-money laundering (AML) and combat the financing of terrorism (CFT) regime within Singapore’s casino sector. The updated Money Laundering National Risk Assessment, released last week, highlighted the GRA’s intention to lower the customer due diligence threshold for casino transactions to align with the standards set by the Financial Action Task Force (FATF).
The FATF, an international watchdog based in Paris, sets global benchmarks for AML and CFT practices. The recent FATF plenary and working group meetings held in Singapore underscored the city-state’s commitment to adhering to these standards. T. Raja Kumar, the inaugural chief executive of the GRA’s predecessor, the Casino Regulatory Authority, served as president of the FATF from July 1, 2022, to June 30, 2023. This connection underscores Singapore’s active role in global AML/CFT efforts.
The GRA conducts periodic reviews of existing regulatory requirements to strengthen the casino sector’s AML/CFT regime. The updated Money Laundering National Risk Assessment noted that the GRA would continue to perform risk-focused monitoring and inspections of casino operators. This approach is essential to address the moderately high risks associated with the sector, particularly given the significant number of international players.
Singapore’s casino industry operates as a duopoly, with Resorts World Sentosa, managed by Genting Singapore Ltd, and Marina Bay Sands, operated by a subsidiary of Las Vegas Sands Corp, being the two licensed casinos. The risk assessment report identified the money laundering threat to these casinos as “moderately high,” primarily due to the large number of foreign players frequenting these venues.
The legislative amendments to reduce the customer due diligence threshold are part of a comprehensive strategy to mitigate money laundering and terrorism financing risks. By lowering the trigger amount for scrutiny, the GRA aims to enhance the effectiveness of AML/CFT measures and ensure compliance with international standards. These steps are crucial in maintaining the integrity of Singapore’s financial system and its casino sector.
Source:
”Weapons finance scrutiny to be part of Singapore casino AML”, ggrasia.com, July 03, 2024.
”Singapore to cut casino diligence trigger to US$2,950: media”, ggrasia.com, July 01, 2024.
