Singapore is about to implement vital modifications to its on line casino rules aimed toward strengthening anti-money laundering (AML) and combatting the financing of terrorism (CFT) measures. The updates embody decreasing the brink for buyer due diligence checks and introducing new scrutiny for weapons finance. These measures will make sure that Singapore’s on line casino sector aligns with worldwide requirements set by the Financial Action Task Force (FATF).
Lowering the Due Diligence Threshold
The Gambling Regulatory Authority (GRA) of Singapore has introduced a discount within the money deposit quantity that triggers buyer due diligence checks. Currently, this threshold is about at SGD5,000 (roughly USD3,685). However, the brand new rules will decrease this quantity to SGD4,000 (roughly USD2,950). This change is anticipated to be carried out inside the yr, though the precise date has but to be specified.
According to the up to date Money Laundering National Risk Assessment, this discount goals to reinforce the on line casino sector’s AML/CFT regime. T. Raja Kumar, former president of the FATF and the inaugural chief govt of the Casino Regulatory Authority, emphasised the significance of aligning Singapore’s rules with worldwide requirements.
Introduction of Weapons Finance Scrutiny
In addition to decreasing the due diligence threshold, Singapore can be introducing new measures to deal with proliferation financing. This time period, outlined by the FATF, refers to funds or monetary providers used for nuclear, chemical, or organic weapons in violation of nationwide legal guidelines or worldwide obligations.
The proposed Anti-Money Laundering and Other Matters Bill, at present below overview by Singapore’s parliament, consists of provisions to tighten on line casino operators’ necessities for due diligence on the supply of participant funds. The invoice will mandate that on line casino operators take into account proliferation financing dangers throughout buyer due diligence checks. The Gambling Regulatory Authority of Singapore will probably be empowered to subject rules to detect or stop proliferation financing.
Enhanced Monitoring and Compliance
The Ministry of Home Affairs famous that the brand new rules would require on line casino operators to conduct due diligence on patrons for any single money transaction involving SGD10,000 (roughly USD7,371) or extra, or when receiving SGD4,000 (roughly USD2,950) or extra in a single transaction for deposit right into a buyer account.
Despite the reasonably excessive danger of cash laundering in Singapore’s casinos, the Money Laundering Risk Assessment Report Singapore 2024 reported no direct complicity by casinos in cash laundering actions. However, there have been instances of third-party cash laundering facilitated by casinos. One case concerned an alleged conspiracy to cheat vessel house owners of undelivered gasoline, with proceeds amounting to about SGD1.9 million used to buy on line casino chips.
Easing the Burden of Proof
The Anti-Money Laundering and Other Matters Bill additionally goals to ease the burden of proof in cash laundering prosecutions. The modification to the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act will imply that prosecutors not want to indicate a direct hyperlink between prison conduct and laundered cash. It will probably be enough to show that the cash launderer knew or had affordable grounds to imagine they have been coping with prison proceeds.
This change is designed to facilitate the prosecution of cash mules, particularly in instances the place laundered cash has handed by a number of financial institution accounts and intermediaries in overseas jurisdictions earlier than getting into Singapore.
Conclusion
Singapore’s enhanced rules signify a big step in direction of strengthening its AML/CFT regime inside the on line casino sector. Singapore is aligning itself extra carefully with worldwide requirements by decreasing due diligence thresholds and introducing new measures to fight proliferation financing. These modifications underscore the city-state’s dedication to sustaining a sturdy and efficient regulatory framework to fight monetary crimes.
Sources:
Weapons finance scrutiny to be part of Singapore casino AML, ggrasia.com, July 1, 2024.
Singapore to cut casino diligence trigger to US$2,950: media, ggrasia.com, July 3, 2024.
