Singapore regulator levies hefty penalties against RWS

Shirley Pulis Xerxen December 11, 2023

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Singapore regulator levies hefty penalties against RWS

The Gambling Regulatory Authority (GRA) of Singapore has imposed financial penalties totalling S$2.25 million on Resorts World at Sentosa Pte. Ltd. (RWS). The Singapore regulator handed down the penalties due to RWS’s failure to conduct the prescribed customer due diligence checks mandated by the Casino Control Act 2006 and the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations 2009.

GRA’s detailed investigation uncovering non-compliances

The GRA’s action follows a directive issued in 2020, instructing casino operators RWS and Marina Bay Sands Pte. Ltd. to review specific patrons’ activities. During this process, RWS identified non-compliances related to certain transactions and reported them to the Singapore regulator. Subsequent investigations revealed that between December 2016 and December 2019, RWS failed to conduct the required customer due diligence checks for transactions involving cash deposits of S$5,000 or more collected from third parties for the purpose of depositing into patrons’ accounts.

Systemic failures in controls and immediate corrective measures

Despite having a Prevention of Money Laundering and Terrorism Financing (PMLTF) framework and controls in place, RWS experienced systemic failures in certain controls, leading to the oversight of non-compliances. Upon detecting these lapses, RWS took swift action to enhance its processes and enlisted an independent party to review its standard operating procedures. Additionally, the company initiated a comprehensive review of its corporate culture to reinforce internal controls and corporate governance. In response to the breaches, GRA has cancelled the special employee license of one individual involved and is currently conducting further investigations to assess the culpability of other special employees implicated in the lapses.

RWS reports record Q3 growth

RWS experienced a significant financial boost during Quarter 3, 2023. The integrated resort achieved an impressive 31% quarter-on-quarter growth in adjusted EBITDA, reaching SG$350.4 million (US$257 million). This remarkable increase can be attributed to the continued revival of travel and tourism in Singapore, indicating a positive trend for the renowned destination.

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