Singapore tightens casino rules to fight terrorism financing

Garance Limouzy July 1, 2024

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Singapore tightens casino rules to fight terrorism financing

Singapore, in its efforts to fight terrorism financing, is implementing stricter regulations for casinos. The updated measures, announced by the country’s gambling regulatory body on the 1^st?of June 2024, include a significant reduction in the threshold for conducting due diligence checks on cash deposits.

New due diligence requirements

Under the new regulations, casinos in Singapore must now conduct due diligence checks for cash deposits of SGD 4,000 (approximately 2,744 euros) or more, down from the previous threshold of SGD 5,000 (3,430 euros). The Gambling Regulatory Authority (GRA) stated that this adjustment aligns Singapore’s requirements with those of the Financial Action Task Force (FATF), a global watchdog on money laundering and terrorism financing.

National strategy for countering terrorism financing

The revised National Strategy for Countering the Financing of Terrorism, jointly published by the Ministry of Home Affairs (MHA), the Ministry of Finance (MOF), and the Monetary Authority of Singapore (MAS), defines measures to identify, monitor, and mitigate terrorism financing risks.

Singapore’s strategy focuses on key threats from terrorist groups such as ISIS, Al-Qaeda, and Jemaah Islamiyah, as well as potential impacts from conflicts. Authorities point out the risks posed by self-radicalised individuals and far-right extremism: “far-right extremism is also a growing security concern in many countries,” the authorities observed.

A few days ago, K. Shanmugam, Minister of Law and Home Affairs, declared that Singapore is “a very important target” for terrorists, citing recent attacks and arrests in the neighbouring country of Malaysia.

Adopting global standards

Lowering the due diligence threshold is a proactive step to align Singapore with?the Financial Action Task Force (FATF)?standards. FATF, head-quartered?in Paris, sets international benchmarks for combating money laundering and terrorism financing.

Singapore’s adherence to these guidelines is essential to maintaining its reputation as a robust financial hub with high standards of financial integrity.

In December 2023, Singapore demonstrated its commitment by imposing a significant fine of SGD 2.25 million on Resorts World Sentosa for inadequate checks, marking the largest penalty ever imposed by GRA on a casino operator.

Risk assessment

Singapore’s updated National Strategy for Countering the Financing of Terrorism includes the Terrorism Financing National Risk Assessment, which provides a detailed analysis of current and emerging threats. This assessment identifies critical risk areas such as?money remittance services,?online fund-raising?and new cross-border payment systems, as well as potential vulnerabilities in non-profit organisations and digital payment token services used for terrorism financing.?The report stresses the need for ongoing vigilance and collaboration across sectors to effectively address these risks.