GENTING Singapore : G13 0%’s Resorts World Sentosa has been slapped with financial penalties of S$2.25 million for lapses in performing customer due diligence measures for certain transactions for three years from December 2016.

The Gambling Regulatory Authority directed casino operators Resorts World Sentosa and Marina Bay Sands to conduct a review of certain patrons’ activities in 2020.

The operator owned by Genting Singapore then discovered non-compliances for some transactions and reported them to the authority, said the Gambling Regulatory Authority in a media statement on Friday (Dec 8).

When the authority conducted investigations, it found that Resorts World Sentosa had failed to perform prescribed customer due diligence checks for certain transactions where its employees collected cash of S$5,000 or more from third parties to deposit into its patrons’ accounts.

Casino operators are required to perform customer due diligence checks when they receive a cash deposit of S$5,000 or more into a patron’s deposit account.

When accepting these cash deposits, Resorts World Sentosa had failed to establish the identity of the third-party depositors. The operator also failed to record the requisite identifying information, nor did it verify these identities using reliable and independent sources as required under the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations.

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The Gambling Regulatory Authority said that Resorts World Sentosa had a framework and controls in place to prevent money laundering and terrorism financing, but there were systemic failures in certain controls. This resulted in its failure to detect the non-compliances.

When the non-compliances were detected, Resorts World Sentosa took prompt action to improve its processes and engaged an independent party to review their standard operating procedures. It has also undertaken a review of its corporate culture, with a view to strengthening its internal controls and corporate governance.

The special employee licence for one of the employees involved in the breaches has been revoked, while the authority is conducting further investigations to assess the culpability of the other special employees involved.  

A special employee licence is issued by the Gambling Regulatory Authority to individuals who work in casino-related functions or make decisions on casino operations.

In a filing to the Singapore Exchange on Friday, Genting Singapore said the financial penalty will not have any material impact on the consolidated net tangible assets and earnings per share of the group for the financial year ending Dec 31, 2023.

The firm also noted that there was no evidence of criminal offences or money laundering. Therefore, no police reports were made.

Genting Singapore shares closed 2.6 per cent higher at S$0.98 on Friday, before the penalties were announced.