Financial penalties imposed after lapses in customer due diligence procedures
Genting Singapore’s Resorts World Sentosa has been fined S$2.25 million for failing to conduct adequate customer due diligence on certain transactions over a three-year period from December 2016. The Gambling Regulatory Authority (GRA) found that the casino had not complied with required checks when third parties deposited amounts of S$5,000 or more into patron accounts, as stipulated under the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations.
Although Resorts World Sentosa had a framework in place for preventing money laundering and terrorism financing, systemic failures led to lapses in due diligence checks for third-party deposits. Specifically, the identities of third-party depositors were neither established nor verified, and the necessary information was not recorded.
Upon discovery of these lapses, Resorts World Sentosa took immediate action by reviewing its processes and engaging an independent party to assess its standard operating procedures. The casino also conducted a corporate culture review to strengthen its internal controls and governance. One employee’s special license has been revoked, and further investigations are underway to assess the role of other employees involved.
Despite the fine, Genting Singapore has stated that the penalty will not have a material impact on its net tangible assets or earnings per share for the financial year ending December 31, 2023. Additionally, the company clarified that no evidence of criminal offenses or money laundering was found, and therefore no police reports were made.
