Marina Bay Sands (MBS), the Singapore casino operated by Sheldon Adelson’s Las Vegas Sands Corp., is under investigation by the U.S. Justice Department to see if its anti-money-laundering regulations were breached during the handling of high-roller accounts.
According to Bloomberg, in November 2019 the Financial Action Task Force (FATF) reported that the jurisdiction had inadequate due diligence requirements for casino customers. It said “moderate shortcomings are still affecting” the sector, but did not cite any companies at the time.
A spokesperson for the Casino Regulatory Authority would only say that the agency is “committed to ensuring that the casinos in Singapore, including Marina Bay Sands, remain free from criminal influence or exploitation, and takes a serious view of any allegations of unauthorized money transfers.”
In January, the Justice Department issued a grand jury subpoena to a former MBS compliance chief, seeking an interview or documents on “money laundering facilitation” and any abuse of internal financial controls, according to a copy of the subpoena.
Prosecutors asked the former compliance head, as a person with knowledge of the casino’s operations, to produce records related to any such violations including through junkets and third-party lending using casino credit, the document shows.
The U.S. inquiry, which people familiar with the matter said is likely in its early stages, is also seeking to establish if there was any retaliation against whistle-blowers, according to the subpoena.
Marina Bay Sands is one of the most profitable casinos in the world, accounting for more than one-fifth of revenue and about a third of operating income at the U.S. parent. Las Vegas Sands’ Asian operations, which also include Macau, contributed about 85 per cent of the company’s US$13.7 billion in revenue last year, and have helped make Adelson one of the richest men in the U.S.
A spokeswoman for the U.S. Attorney’s Office in Las Vegas said she could not confirm or deny ongoing investigations. The subpoena also requested information on another former casino employee, who people familiar said carried out fund transfers to high rollers.
In a written response, the Singapore casino said any suggestion of inappropriate activity is taken seriously, and it has investigated every assertion of wrongdoing brought to its attention. Marina Bay Sands and its parent company haven’t received any requests from the Department of Justice, according to people familiar with the matter.
Since opening in 2010, the casino has become an iconic tourist attraction, and was featured in the “Crazy Rich Asians” film. In addition to the 160,000 square-foot casino, the complex has three 55-story hotel towers topped with a boat-shaped sky deck and pool, as well as a shopping mall and convention center.
Like many casinos around the world, Marina Bay Sands is closed due to the pandemic, slashing revenue for firms like Las Vegas Sands. Macau gaming revenue across all casinos plunged 93 percent in May from the year earlier, as operators await the opening of borders to spark a recovery after an unprecedented shutdown.
The AML investigation is something of a mystery because of Adelson’s close ties with the Trump administration. It’s been suggested that Adelson influenced the DOJ in reversing an Obama-era opinion that the Wire Act doesn’t cover anything by interstate sports betting. The DOJ is currently fighting a ruling by a New Hampshire judge that overturned that ruling, but the fact that they continue to pursue it makes some observers suspicious of Adelson’s role.
But one cynical Twitter poster has another idea. “To be fair, the ‘probe’ from the DOJ has so far produced nothing. If I was the puppeteer of a system, I’d make sure it appeared as if they were repressing me as well.”
