Resorts World Sentosa Fined For Due Diligence Failings

Resorts World Sentosa (RWS), owned by Genting Singapore, has been hit with a hefty fine of S$2.25 million ($1.7 million) by the Singapore gambling regulator, the Gambling Regulatory Authority (GRA). The penalty was imposed due to RWS’s failure to perform due diligence checks when receiving cash deposits of S$5,000 ($3,725) or more from third parties to deposit into customers’ accounts. This breach of regulatory requirements has prompted GRA to take disciplinary action against the casino operator.

In 2020, GRA directed RWS and another casino operator, Marina Bay Sands, to review certain patrons’ activities. This review revealed non-compliance in some transactions, prompting further investigations by GRA. These investigations uncovered RWS’s failure to perform prescribed customer due diligence checks between December 2016 and December 2019.

During this period, RWS’s employees collected cash amounts of S$5,000 ($3,725) or more from third parties to deposit into the accounts of RWS’s patrons without conducting the necessary checks. The GRA found this breach to be a serious offense and took immediate action to address the issue.

As a consequence of the regulatory violation, GRA has cancelled the special employee license of one staff member involved in the breaches. The regulatory authority is currently investigating the culpability of other employees in this matter. A casino special employee license is issued by GRA to individuals working in casino-related functions or making decisions on casino operations.

Genting Singapore has stated in a filing with the Singapore Exchange (SGX) that there is no evidence of criminal offenses or money laundering, and no police report has been filed. Despite this assertion, the penalty imposed by GRA indicates a significant breach of regulatory requirements by RWS.

GRA takes a serious view of such lapses and is committed to maintaining tight supervision over casino operators’ compliance with regulatory requirements. The regulatory authority emphasized that it will not hesitate to take disciplinary action against errant operators.

This recent fine is not the first time RWS has faced penalties for non-compliance. Between April 2022 and March 2023, RWS was fined a total of S$95,000 ($70,783) for breaching casino control regulations. The fines were imposed for failing to perform customer due diligence measures and enhanced customer due diligence measures.