Debated in Parliament on 12 Nov 2012.
Asst Prof Tan Kheng Boon Eugene asked the Deputy Prime Minister and Minister for Home Affairs (a) what is the risk that casinos in Singapore are being used for money laundering and terrorism financing given that large and erratic inflows and outflows of cash are common; (b) whether the Casino Control Act's regulatory framework and safeguards are robust enough to detect such illicit activities; and (c) whether there have been any infringements of the Casino Control Act provisions on anti-money laundering.
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We recognise that casinos are vulnerable to criminal activities, such as money laundering and terrorism financing, and have put in place a robust framework to mitigate the risks. This strict regime is underpinned by two key pieces of legislation – the Casino Control Act (CCA) and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA).
Our anti-money laundering regime for casinos is aligned to the recommendations of the inter-governmental Financial Action Task Force (FATF). These recommendations prescribe international standards on how jurisdictions should combat money laundering and terrorism financing, and apply to financial institutions, such as banks, and non-bank entities, including casinos.
Let me highlight the key safeguards that we have put in place. The CDSA, as the primary piece of legislation against money laundering, criminalises the laundering of benefits derived from serious crimes. It requires persons, including Casino Operators and their employees, to report any suspicious transactions if they know or suspect that the funds may represent criminal proceeds. Specifically for casinos, the CCA prescribes measures that Casino Operators are required to put in place to prevent and detect money laundering and terrorist financing. The Casino Operators are prohibited from entering into any transaction involving the conversion of money from one form to another when the funds are not used for gaming. As part of the mandatory "Customer Due Diligence" measures, the Casino Operators are required to verify patrons' identities when they open gaming accounts, and monitor these accounts to ensure consistency with their knowledge of the patrons' income profiles or source of funds. Strict record keeping requirements are also imposed on the Casino Operators, and they are required to file a report for any cash transaction involving an amount of $10,000 or more.
Casino Operators who fail to comply with our anti-money laundering laws are liable to fines and disciplinary actions, which may include suspension or cancellation of the casino licences. Since the casinos began operations, our enforcement agencies have not detected any major infringement of the anti-money laundering provisions of the Casino Control Act by the Casino Operators. There has been one conviction of a person for money laundering in a casino under the CDSA thus far. That case involved a person who had misappropriated jewellery from her employer and converted her criminal proceeds, from pawning that jewellery, into gambling chips at a casino.
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The Government will continue to benchmark our casino regulatory regime against international standards and best practices to keep our casinos free from criminal influence and exploitation.
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