New AML law frees Singapore casinos to share patron data
Singapore has tightened its AML and counter terrorism financing (CTF) controls with new legislation enacted 6 August. It works in part by allowing the city’s two casinos to trade consumer data, without consumer consent.
The Anti Money-Laundering and Other Matters Bill includes an amendment to the Casino Control Act of 2006. It empowers Singapore casinos to share customer information without going through the Gaming Regulatory Authority (GRA), as previously required.
According to the ministry of home affairs, the prior process prevented “timely action” in the case of suspicious transactions. Without a middleman, casino operators can act more quickly, enhancing “the operational effectiveness” of the regulatory system.
Reducing due-diligence threshold
The bill updates the requirements for customer due diligence (CDD) checks to help detect and prevent financial crimes.
Previously, those checks were triggered when patrons made single cash transactions of S$10,000 (£5,922/€6,892/US$7,537) or more, or deposited S$5,000 or more into an account. The threshold has now been lowered to S$4,000 for both cash transactions and deposits.
The GRA says the change will “align our requirements” with standards set by the Paris-based Financial Action Task Force (FATF). The global watchdog agency grades jurisdictions on their AML/CTF safeguards. Three times a year, it publishes grey and black lists of markets that are vulnerable to financial crimes.
Two Asian countries – the Philippines and Vietnam – are on the grey list. That list currently includes 21 countries, many in Africa. A proposed ban of Philippine Offshore Gambling Operators could help that country to get off the list.
Singapore is now rated compliant, largely compliant and partially compliant on most of FATF’s 40 AML/CTF recommendations.
Billions of dollars in play
Singapore’s two multibillion-dollar casinos, Resorts World Sentosa (RWS) and Marina Bay Sands (MBS), generated S$5.25bn in revenue in 2023. Jointly, the Singapore casinos hold exclusive rights to gaming through 2030. To maintain their lock on the valuable market, the companies have pledged to invest more than S$11bn in their properties. Resorts World has committed S$6.8bn for Resorts World Sentosa and Marina Bay Sands has committed S$4.5bn.
Singapore officials suggest the casino industry, by its nature, is less attractive to money launderers than some others. In a June report, three government agencies cited the uncertainty of gaming, including the risk of losing. The report was compiled by the ministry of home affairs, the ministry of law and the monetary authority of Singapore. When criminals entered casinos, the report added, they typically used ill-gotten gains for pleasure, rather than “washing” them.
Last year, only 137 crimes, or 0.2% of all cases, were reported at the city’s land-based casinos.
2023 scandal spurred legislation
However, the money laundering scandal of 2023, which likely prompted the legislation, was gambling related. Investigators discovered that criminals laundered more than S$3bn in proceeds from online gambling through at least 16 Singapore banks.
In addition, last December, the GRA imposed a S$2.25m fine on RWS for failing to conduct due-diligence checks, the largest penalty in the industry’s history.
“What serves us best is a risk-based approach,” said Second Minister for Home Affairs Josephine Teo, in comments before parliament. “This means not viewing all transactions with suspicion, but looking into instances of concern.”
MP Sylvia Lim added that the larger financial ecosystem must be “scrutinised for gaps and vulnerabilities”.