1-7-2024 (SINGAPORE) In a move aimed at bolstering Singapore’s defenses against the financing of terrorism, the city-state’s casinos will soon face stricter regulations surrounding cash transactions. The Gambling Regulatory Authority (GRA) has announced a revision to the threshold for conducting due diligence checks on cash deposits into customer accounts, lowering it from the current S$5,000 (US$2,950) to S$4,000.
This adjustment, set to be implemented later this year, is part of Singapore’s efforts to align its anti-money laundering and counter-terrorism financing measures with the standards set by the Financial Action Task Force (FATF), the global watchdog for combating illicit financial activities.
“The adjustment is made so that Singapore casinos can better combat money laundering and terrorism financing and align our requirements with FATF standards,” the GRA stated in a press release on Monday.
The announcement comes on the heels of a significant penalty imposed on Resorts World Sentosa in December 2023, when the casino operator was fined S$2.25 million for failing to conduct proper due diligence checks – the largest fine ever levied by the GRA on a casino.
The tightening of cash transaction rules is one of several measures outlined in Singapore’s updated National Strategy for Countering the Financing of Terrorism, jointly published on Monday by the Ministry of Home Affairs (MHA), the Ministry of Finance (MOF), and the Monetary Authority of Singapore (MAS).
Accompanying the updated strategy is the Terrorism Financing National Risk Assessment, a comprehensive report that highlights the evolving nature of terrorism financing risks and underscores Singapore’s commitment to a whole-of-government approach in identifying, monitoring, and mitigating such threats.
“Singapore has developed and implemented a systematic and comprehensive whole-of-government approach to identify, monitor, and mitigate terrorism financing risks,” the authorities stated. “The security, intelligence (including financial intelligence), law enforcement, supervisory, and regulatory agencies constantly scan for existing and emerging terrorism financing risks, informed by previous cases, international reports and feedback from foreign counterparts on risks.”
The assessment identifies key threats emanating from terrorist groups such as ISIS, Al-Qaeda, and Jemaah Islamiyah, as well as potential spillovers from ongoing conflicts and tensions in the Middle East. Additionally, self-radicalised individuals sympathetic to the cause of terrorist organizations, particularly ISIS, are recognized as a significant threat.
Furthermore, the report acknowledges the growing concern of far-right extremism in many countries, cautioning that while it has not gained significant traction in Southeast Asia, its anti-Islam and anti-immigration rhetoric cannot be disregarded as a potential catalyst for radicalization.
Among the high-risk areas highlighted in the assessment are money remittances, with cross-border online payments identified as a potential new channel for terrorism financing activities. Banks are classified as medium-high risk, with new cross-border fast payment systems flagged as a potential vulnerability.
Digital payment token service providers have been elevated from medium-low to medium-high risk, reflecting the evolving landscape of financial services and the digital economy.
