Casinos in Singapore are facing tighter regulations to prevent terrorism financing and money laundering

“The alignment is intended to enable Singapore casinos to better combat money laundering and terrorist financing and align our requirements with FATF standards,” the Gambling Regulatory Authority (GRA) said on Monday.

FATF, the Financial Action Task Force, is the global watchdog for combating money laundering and terrorism financing.

In December 2023, Resorts World Sentosa was fined S$2.25 million for failing to carry out such checks, the largest fine imposed by the GRA on a casino operator.

The new due diligence threshold was set out as part of measures outlined in Singapore’s updated National Terrorism Financing Strategy, released jointly by the Ministry of Home Affairs (MHA), Ministry of Finance (MOF) and Monetary Authority of Singapore (MAS) on Monday.

The updated report was published together with the National Terrorism Financing Risk Assessment.

The latest report – the National Money Laundering Risk Assessment – stated that lowering the threshold would be in line with FATF standards.

Authorities said Singapore’s openness as an international financial, business and transport hub could be used to finance terrorist activities.

As the global terrorism landscape evolves, so will Singapore’s terrorism financing risk, hence the refreshed assessment and strategy, the MHA, MOF and MAS said.

“Singapore has developed and implemented a systematic and comprehensive, whole-of-government approach to identify, monitor and mitigate terrorism financing risks,” it said.

Security, intelligence (including financial intelligence), law enforcement, surveillance and regulatory agencies continually monitor existing and emerging terrorism financing threats, using information from previous cases, international reports and threat feedback from foreign counterparts.

The authorities said they are also actively engaging with and working with the private sector and academia to increase their understanding of such threats.

In its assessment, Singapore identified its key terrorism financing threats from terrorist groups such as ISIS, Al-Qaeda and Jemaah Islamiah, as well as potential spillover effects from the ongoing war between Israel and Gaza and tensions in the Middle East. Self-radicalized people who sympathize with the cause of terrorist groups, in particular ISIS, also pose a threat.

“Far-right extremism also poses an increasing security threat in many countries,” the authorities noted.

“While it has not gained significant popularity in Southeast Asia, we cannot rule out that its anti-Islam and anti-immigration rhetoric will resonate with some people.”

Authorities said the updated National Terrorism Financing Risk Assessment takes into account key developments since its last incarnation in 2020. These include the evolving global and regional terrorism landscape, the growth of the digital economy and financial services in Asia, and emerging typologies of terrorism financing risk.

As in the previous edition, the 2024 Risk Assessment found that the collection and transfer of funds for terrorists and terrorist activities abroad remains relevant in the Singapore context.

Authorities said self-radicalised individuals continued to pose the greatest terrorism financing threat to Singapore.

The key terrorist financing risk areas in 2024 are largely similar to those identified four years ago:

• Money transfers are classified as high-risk transactions, and cross-border online payments are considered a potential new channel for financing terrorist activities.

• Banks are in the medium-high risk group, and new cross-border quick payment systems have been identified as a potential new channel for financing terrorist activities.

• Digital payment token service providers have been moved from medium-low to medium-high risk.

• Nonprofits continue to face medium to low risk, with overseas online crowdfunding identified as a new type of terrorism financing concern.

• Cross-border cash flows remain medium-low risk.

• Gemstones, precious metals and precious products are also medium to low risk.

The latest report supports the goals of the National Strategy for Countering Terrorism Financing, launched in 2022, which includes actions to prevent, detect, investigate and enforce terrorist financing.

Singapore will continue to work with industry players to implement strategies and measures to combat terrorism financing threats, authorities said.

They will also seek to work closely with foreign counterparts, international organisations and standards-setting bodies such as the FATF.