“We are making this change to enable casinos in Singapore to better combat money laundering and terrorism financing and align our requirements with FATF standards,” the Gambling Regulatory Authority (GRA) said on Monday.
FATF, the Financial Action Task Force, is the worldwide watchdog for combating money laundering and terrorism financing.
In December 2023, Resorts World Sentosa was fined S$2.25 million for failing to conduct such checks, the biggest superb imposed by the GRA on a casino operator.
The latest due diligence threshold was set out as a 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 alongside the National Terrorism Financing Risk Assessment.
The latest report – the National Money Laundering Risk Assessment – stated that the lowering of the edge can be consistent with FATF standards.
Authorities have said Singapore’s openness as a global financial, business and transportation centre may very well be exploited to finance terrorist activities.
As the worldwide terrorism landscape evolves, so will the terrorism financing threats to Singapore, hence the updated 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, supervisory and regulatory agencies continually monitor existing and emerging terrorist financing threats, drawing on information from previous cases, international reports and threat intelligence from foreign counterparts.
Authorities said they’re actively working with the private sector and academia to lift awareness of such threats.
In its assessment, Singapore identified the essential threats to terrorism financing: from terrorist groups resembling ISIS, Al-Qaeda and Jemaah Islamiah, in addition to potential spillovers from the continuing war between Israel and Gaza and tensions within the Middle East. Self-radicalized individuals who sympathize with the reason for terrorist groups, particularly ISIS, also pose a threat.
“Far-right extremism is also an increasingly serious security problem in many countries,” 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 under consideration key developments since its last incarnation in 2020. These include the evolving global and regional terrorism landscape, the expansion of the digital economy and financial services in Asia, and emerging typologies of terrorism financing risk.
As within the previous edition, the 2024 Risk Assessment found that the gathering and transfer of funds for terrorists and terrorist activities abroad stays significant within the Singapore context.
Authorities said self-radicalised individuals continued to pose the best terrorism financing threat to Singapore.
The key areas of terrorism financing risk in 2024 are largely much like those identified 4 years ago:
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Money transfers are classified as high-risk, and cross-border online payments are seen as a possible latest channel for financing terrorist activities.
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Banks are at medium-high risk, and latest cross-border fast payment systems have been identified as a possible latest channel for financing terrorist activities.
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Digital payment token service providers have been moved from medium-low to medium-high risk.
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Nonprofits proceed to face medium to low risk, with overseas online crowdfunding identified as a brand new form of terrorism financing concern.
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Cross-border money flows proceed to pose medium to low risk.
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Precious stones, precious metals and precious products also remain within the medium-low risk group.
The latest report supports the goals of the National Counter Terrorism Financing Strategy, launched in 2022, which incorporates actions to forestall, detect, investigate and implement terrorist financing.
Singapore authorities said they are going to proceed to work with industry stakeholders to implement strategies and measures to combat terrorism financing threats.
They can even seek to work closely with foreign counterparts, international organisations and standards-setting bodies resembling the FATF.
