The Gambling Regulatory Authority (GRA) of Singapore has imposed a fine of SG$2.25 million (US$1.67 million) on Resorts World Sentosa for its failure to conduct customer due diligence checks, as mandated by the Casino Control Act 2006 and the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations 2009. This penalty follows a directive in 2020 for both of Singapore’s casino operators, Resorts World Sentosa and Marina Bay Sands, to review certain patrons’ activities.
Background and Regulatory Oversight:
In 2020, both casino operators were directed to review patrons’ activities, leading to Resorts World Sentosa reporting non-compliance in certain transactions.
The Gambling Regulatory Authority conducted further investigations into Resorts World Sentosa’s practices.
Compliance Failures and Investigations:
Between December 2016 and December 2019, Resorts World Sentosa neglected to perform customer due diligence checks for transactions involving cash deposits of SG$5,000 or more from third parties.
Failures included the absence of identity verification for third-party depositors and the lack of recording necessary identifying information, as required by the Prevention of Money Laundering and Terrorism Financing Regulations.
Systemic Failures and Remedial Actions:
Despite having a Prevention of Money Laundering and Terrorism Financing (PMLTF) framework and controls, Resorts World Sentosa experienced “systemic failures” in certain controls that resulted in non-compliance detection lapses.
Prompt corrective action was taken by Resorts World Sentosa, including process improvements, engagement of an independent party for SOP review, and a comprehensive review of corporate culture to strengthen internal controls and governance.
Employee Consequences and Ongoing Investigations:
An employee implicated in the compliance breaches had their special license revoked.
Further investigations are underway to determine the potential culpability of other employees involved in the lapses.
Regulatory Stance and Future Supervision:
The GRA emphasizes a zero-tolerance stance towards compliance lapses and pledges to take disciplinary action against errant casino operators.
Ongoing tight supervision by the regulator over operators’ compliance with regulatory requirements is highlighted.
Response from Resorts World Sentosa:
Resorts World Sentosa emphasized that there was no evidence of criminal offenses or money laundering, and no police reports were filed.
The operator expressed a commitment to compliance, outlined remedial actions taken, including technology enhancements and intensified employee training, and highlighted collaboration with the GRA for ongoing process improvement.
Financial Impact and Assurance:
Resorts World Sentosa reassures that the financial penalty imposed by the GRA will not materially impact consolidated net tangible assets and earnings per share for the financial year ending December 31, 2023.
The fine levied on Resorts World Sentosa underscores the importance of robust compliance in the casino industry. While acknowledging and addressing past lapses, the operator commits to upholding high regulatory standards and collaborates with the GRA to fortify processes and controls. The GRA’s vigilant oversight and commitment to disciplinary action emphasize the imperative for casino operators to maintain stringent compliance with regulatory requirements.