Singapore casinos tighten regulations to fight against terrorist financing and money laundering

Casinos in Singapore will soon face tighter rules on conducting due diligence checks when receiving cash, as part of updated measures to counter terrorism financing.

Due diligence checks will need to be carried out when casinos receive a cash deposit of S$4,000 (US$2,950) or more into a customer's account, below the current threshold of S$5,000.

This is the first review of the threshold. It would be implemented this year, although authorities did not indicate when exactly the new requirements would take effect.

"The adjustment is being made so that Singapore casinos can better combat money laundering and terrorist financing and align our requirements with FATF standards," the Gaming Regulatory Authority (GRA) said on Monday.

The FATF, the Financial Action Task Force, is a global watchdog against money laundering and terrorist financing. In December 2023, Resorts World Sentosa was fined S$2.25 million for failing to carry out such checks, the largest penalty imposed by the GRA on a casino operator.

The FATF, the Financial Action Task Force, is a global watchdog against money laundering and terrorist financing. In December 2023, Resorts World Sentosa was fined S$2.25 million for failing to carry out such checks, the largest penalty imposed by the GRA on a casino operator.

The new threshold for due diligence checks is among measures set out in Singapore's updated National Strategy to Counter Terrorist Financing, jointly released on Monday by the Ministry of Home Affairs (MHA), Ministry of Finance (MOF) and the Monetary Authority. of Singapore (MAS).

A recent report, the National Money Laundering Risk Assessment, stated that lowering the threshold would align with FATF standards.

Officials said Singapore's openness as an international financial, trade and transport hub could be exploited to finance terrorist activities.

As the global terrorism landscape evolves, so will Singapore's terrorism financing risks, hence the updated assessment and strategy, MHA, MOF and MAS said.

“Singapore has developed and implemented a systematic and comprehensive government-wide approach to identifying, monitoring and mitigating terrorist financing risks,” officials said. Security, intelligence [including financial intelligence], law enforcement, supervision and regulatory agencies constantly look for existing and emerging terrorist financing risks, informed by previous cases, international reports and comments from foreign counterparts on the risks.

Authorities said they are also actively engaging and cooperating with the private sector and academia to improve their understanding of such risks.

In its assessment, Singapore has identified the main threats to terrorist financing: terrorist groups such as ISIS, Al Qaeda and Jemaah Islamiah, as well as possible repercussions from the ongoing war between Israel and Gaza and tensions in the Middle East. Self-radicalized individuals who sympathize with the cause of terrorist groups, particularly ISIS, are also a threat.

Far-right extremism is also a growing security problem in many countries,” officials noted. “Although he has not gained significant traction in Southeast Asia, we cannot rule out that his anti-Islam and anti-immigration rhetoric may resonate with some people.

 Officials noted that the updated National Terrorism Financing Risk Assessment has taken into account key developments since its last version in 2020. These include the evolving global and regional terrorism landscape, the growth of the digital economy and financial services. in Asia, and emerging typologies of terrorist financing risk.