9-12-2023 (SINGAPORE) Resorts World Sentosa (RWS), one of Singapore’s prominent casino operators, has been slapped with a hefty S$2.25 million fine by the Gambling Regulatory Authority (GRA) for failing to conduct crucial customer due diligence checks.
Under the Casino Control Act and the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations, casino operators are obligated to perform customer due diligence checks when receiving cash deposits of S$5,000 or more into a patron’s deposit account.
The GRA, in a press release on December 8, highlighted that RWS neglected to establish the identity of third-party depositors. The casino operator failed to record the necessary identifying information and neglected to verify these identities through reliable and independent sources, as mandated.
This fine represents the largest penalty imposed by the GRA on a casino operator to date, as reported by CNA.
The regulatory scrutiny began in 2020 when the GRA instructed both RWS and Marina Bay Sands (MBS) to review certain patrons’ activities. RWS identified non-compliant transactions during this review and promptly reported them to the GRA.
Subsequent investigations by the GRA revealed that RWS had neglected customer due diligence checks for specific transactions spanning December 2016 to December 2019. The GRA acknowledged that RWS had established a framework and controls to adhere to guidelines, but systemic failures in certain controls led to the failure to detect non-compliances.
RWS responded swiftly by improving its processes and engaging an independent party to review standard operating procedures. Additionally, a review of corporate culture was initiated to reinforce internal controls and corporate governance.
In addition to the substantial fine, the GRA cancelled the special employee licence of one individual involved in the breaches. The GRA issues casino special employee licences to individuals responsible for casino-related functions or decision-making in casino operations. Further investigations are ongoing to assess the culpability of other special employees involved.
The GRA affirmed its commitment to strict supervision and enforcement of regulatory requirements, emphasizing its intent to take disciplinary action against any errant casino operators. The authority remains dedicated to upholding the integrity of the casino industry through robust regulatory oversight.
