Singapore's GRA Imposes $1.67M Fine on Resorts World Sentosa for AML Breaches

In a recent announcement, the Singapore Gambling Regulatory Authority (GRA) revealed that Resorts World Sentosa (RWS) is facing a hefty fine of $1.67 million due to multiple failures in conducting proper due diligence. The GRA highlighted that RWS did not adhere to the checks mandated by the Casino Control Act 2006 and the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations 2009. The penalty stems from RWS's non-compliance instances recorded during the GRA's review initiated in 2020.

Between December 2016 and December 2019, the GRA discovered several due diligence failures by RWS. Employees neglected checks for transactions exceeding 5,000 Singaporean dollars and failed to verify the identity of third-party depositors, violating PMLTF Regulations. The consequence of these serious violations is a substantial fine of S$2.25 million imposed on the casino resort.

In response, RWS has taken steps to rectify the non-compliances. Despite having a Prevention of Money Laundering and Terrorism Financing (PMLTF) framework and controls in place, systematic failures hindered RWS from detecting some instances of non-compliance. The casino resort promptly addressed the issues once identified, engaging an independent party to review its standard operating procedures. RWS is also conducting a thorough review of its corporate culture to strengthen internal controls and corporate governance.

The GRA emphasized the severity of RWS's violations and took further action by revoking the special employee license of one involved in the breaches. Ongoing investigations aim to determine the culpability of other special employees implicated in the violations. The authority reiterated its commitment to strict supervision over compliance matters, serving as a warning to casino operators.

Regulatory Landscape:

This development aligns with Singapore's broader initiative to reinforce regulations, as evident in its consideration of stringent cryptocurrency regulations in November. The country, known for its strict gambling regulations, continues to prioritize maintaining a robust regulatory framework to ensure compliance within its industries.