By Lee Jia Xin
AS CASINOS are vulnerable to money laundering risks, Singapore has taken preemptive steps to stamp it out, said Law and Second Home Affairs Minister S. Shanmugam on Tuesday.
Casinos have been listed by the Financial Action Task Force (FATF) as one of seven designated non-financial businesses and professions susceptible to money laundering risks.
'We are aware of these risks. That was why even before the first foundations of these resorts were laid, we had taken steps to establish the Casino Regulatory Authority in 2008 - two years before the casinos opened,' said Mr Shanmugam at an Asia-Pacific meeting on money laundering on Tuesday morning.
The CRA has mandated comprehensive regulations for casinos, which are prescribed in the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations under the Casino Control Act.
'These are benchmarked against FATF standards, and on par with regimes applied by other jurisdictions on their casinos - such as the United States and Australia,' said Mr Shanmugam. 'This preemptive approach is another example of our determination to keep money laundering and terrorist financing off our shores.'
The minister also stressed the need for the FATF and its regional body to develop new ways to measure a regime's effectiveness in detering financial crimes.
The focus must not only be on convictions rates but measuring the actual level of deterrence and disruption, he said, adding: 'A more comprehensive set of indicators is needed, one that takes into cognizance each jurisdiction's unique circumstances so that initiatives are operationalised pragmatically ... in the fight against financial crimes.'