Resorts World Sentosa fined $2.25 million for failing to conduct customer checks

SINGAPORE: The Gambling Regulatory Authority (GRA) has imposed a fine of S$2.25 million on Resorts World Sentosa (RWS) for its failure to perform customer due diligence checks, as mandated by the Casino Control Act 2006 (CCA) and the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations 2009 (PMLTF Regulations).

The GRA’s action follows a directive issued in 2020, instructing both casino operators, RWS and Marina Bay Sands Pte. Ltd., to conduct a review of specific patrons’ activities. RWS subsequently identified non-compliances in certain transactions and promptly reported them to the GRA.

Subsequent investigations by the GRA unveiled that between December 2016 and December 2019, RWS neglected to conduct prescribed customer due diligence checks for transactions where employees collected cash amounts of S$5,000 or more from third parties, intending to deposit the funds into the accounts of RWS patrons.

During these cash transactions, RWS failed to establish the identity of the third-party depositors. The GRA said that the casino did not document the required identifying information and did not verify these identities using reliable and independent sources, as mandated by the PMLTF Regulations.

Despite having a Prevention of Money Laundering and Terrorism Financing (PMLTF) framework and controls in place, RWS experienced systemic failures in certain controls, leading to an inability to detect these non-compliances.

The GRA said that once these issues were identified, RWS promptly undertook corrective measures, improving its processes and engaging an independent party to review its standard operating procedures. The casino also initiated a comprehensive review of its corporate culture, aiming to strengthen internal controls and corporate governance.

In response to the breaches, the GRA has revoked the special employee license for one individual involved in the non-compliance incidents. Further investigations are underway to assess the culpability of other employees involved in these lapses.

Stressing its commitment to addressing such serious lapses, the GRA said that it will not hesitate to take disciplinary action against errant operators and affirmed that it will maintain stringent supervision over operators’ compliance with regulatory requirements.