Mobsters and hookers unwelcome in Singapore
December 27, 2006 - 12:19PM
Loan sharks, prostitutes, money launderers and mobsters - they're
traditionally as much a part of casinos as the punters
themselves.
But squeaky-clean Singapore is taking steps to make sure criminals
have no place in the city-state's two new gaming centres, which are
due to open by 2010.
Analysts have confidence the strict regulatory system will work,
and that Singapore will remain one of Asia's most crime-free
countries even after the multi-billion dollar projects change the
face of the city.
"There should be very little concern," said Steven Tan, a
Malaysia-based analyst with CIMB-GK Securities.
Singapore is a majority ethnic Chinese country where legalised
betting on football, horse racing and lotteries is
widespread.
But when the government first raised the prospect of casino
gambling, a public debate erupted in the city-state where voices of
dissent against the government are rarely heard.
The opposition Workers' Party feared a casino could threaten
Singapore's "family values" reputation and put it at risk of
becoming a centre for money laundering.
The government went ahead anyway, hoping the casino "resorts" -
which will have entertainment and other facilities alongside the
gaming areas - would boost the city's tourism appeal.
Las Vegas Sands, which has operations in the booming southern
Chinese gambling enclave of Macau, won Singapore's first casino
licence in May. Its bid underlined an effort to strengthen
Singapore's position as a top meeting and conventions
destination.
Early this month Singapore named Genting International and Star
Cruises, both part of Malaysia's Genting Group, as winner of a
second casino licence on Sentosa island. Their family-oriented
proposal features a Universal Studios theme park and the world's
largest oceanarium.
The projects are scheduled to open in 2009 and 2010.
Stephen Vickers, president and chief executive officer of
International Risk in Hong Kong, said earlier this year that
organised crime remains a threat to Asia's burgeoning gaming
industry.
He said vigilance and a zero tolerance approach are needed to keep
out the triads and organised crime syndicates which have not
completely disappeared despite stiff enforcement measures.
"There is a long history of triad and organised crime and
penetration of gambling especially in Macau and South-East Asia,"
Vickers said.
"Those people have not all died and gone away."
But Singapore police say traditional Hong Kong-style triad groups
no longer exist in the city-state.
"How many criminals do you see in Singapore?" said CIMB-GK's Tan.
"You don't find much robbery. You don't find gangsters."
Jonathan Galaviz, a partner with Las Vegas-based consulting and
research firm Globalysis, said Singapore has made it clear that
"any form of criminal activity will be dealt with swiftly, and that
the casino gaming activity is going to be no exception".
While Las Vegas once had a reputation for mafia infiltration of its
casinos, Galaviz said a solid regulatory system has made criminal
activity practically non-existent among operators there.
"Of course there's another side of the equation, which is the
consumer side," he said - adding that surveillance technology and
other measures are effective against criminal customers.
Galaviz said Macau's regulatory system is well respected but was
still "a work in progress" in a city that liberalised its gaming
sector only five years ago.
Singapore's home affairs ministry - which groups the country's law
enforcement agencies - says it will work closely with casino
operators to set up a comprehensive regulatory and enforcement
framework.
"The ministry of home affairs is mindful that casinos can bring
with it associated law and order problems such as illegal money
lending or loan shark syndicates, prostitution, money laundering
and criminal gang activities," it said.
A planned Casino Regulatory Authority (CRA) will require casino
operators to put in place a robust anti-money laundering program,
and will scrutinise the operators' programs and financial records,
it said.
Police have formed a new criminal investigation branch to detect
casino crimes, the ministry said.
Galaviz said Singapore already has a reputation for transparent and
ethical regulation of other industries, and gaming will be no
exception.
"So there should be really no concerns as it relates to Singapore's
position on the regulatory front," he said.
Singapore also has strong existing regulations to prevent money
laundering in the financial sector, making that type of crime
unlikely in casinos, he said.
Tan agreed, but added: "There's no such thing as 100 per
cent."
AFP
--
http://www.smh.com.au/news/singapore/mobsters-and-hookers-unwelcome-in-singapore/2006/12/27/1166895340500.html
