Regulatory Oversight
The Singapore Gambling Regulatory Authority (GRA) has taken stringent action against Resorts World Sentosa (RWS), issuing fines amounting to S$2.3 million. This significant penalty was imposed due to RWS's failure to conduct essential customer due diligence checks, a violation of Singaporean laws including the Casino Control Act 2006 and the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations 2009.
The Background
The GRA's investigation traces back to 2022 when it instructed both RWS and Marina Bay Sands to review certain patron activities. During this review, RWS uncovered non-compliance in some transactions and promptly reported them to the GRA. Subsequent investigations by the regulator revealed that RWS had neglected to perform prescribed customer due diligence checks from December 2016 to December 2019. These checks were especially crucial when handling cash deposits of $5,000 or more from third parties into RWS patron accounts.
Lack of Identity Verification
GRA's findings indicated that RWS had failed to establish the identities of third-party depositors. Moreover, RWS did not maintain the necessary identifying information or verify identities using reliable and independent sources, as mandated by the PMLTF Regulations.
Systematic Failures
While acknowledging that RWS had a framework and controls in place to prevent money laundering and terrorism financing, the GRA identified "systematic" failures in certain controls, leading to the inability to detect non-compliances.
Immediate Actions and Ongoing Investigations
RWS took swift corrective actions to enhance its processes upon discovering these non-compliances. It engaged an independent party to review its operating procedures and underwent a corporate culture review to strengthen internal controls and corporate governance. Nevertheless, the GRA proceeded to impose fines close to S$2.3 million. Furthermore, the regulator revoked the special employee license of one staff member involved in the breaches and initiated additional investigations to assess the culpability of other special employees.
The GRA's spokesperson emphasized their commitment to strict oversight of casino operators' compliance with regulatory requirements and their readiness to take disciplinary action when necessary. This development highlights the GRA's dedication to maintaining the integrity of Singapore's gambling industry and ensuring that operators adhere to the highest standards of compliance.