Korea is considering introducing measures to bring its casinos in line with the international agency Financial Action Task Force (FATF) anti money laundering recommendations. However, before any action is taken the government will discuss the issues involved and undertake public consultation. Some countries, such as the UK and USA, already require casinos to report suspicious transactions and Korea has anti-money laundering laws in place for its financial institutions. At present casinos are only obliged to report if the money concerned is in the exchange of large amounts of foreign currency or travellers cheques.

The government has some reservations over how reporting and maintaining due diligence over customer transactions might affect casino profitability. Most big gamblers are insistent that their privacy is not compromised, and if Korea imposes the recommended strictures then its mostly foreigners-only casinos may lose trade. The one casino that is open to Koreans is the state-owned Kangwon Land, which had been expected to profit from a relaxation in regulation.

It has been estimated that over the next six or so years there could be as many as 50 new casinos in the Asia region. Apart from the two sanctioned in Singapore there is the possibility that Thailand and Japan could authorize casinos, and Korea itself has recently decided to grant three more licences. Macau casino construction is booming with the Cotai Strip being turned into the east’s Las Vegas Strip. It had been anticipated that Korea would act to promote further deregulation of its casino industry in order to compete, but the anti-money laundering initiative may lead to greater restrictions instead. (E-12.02.05)

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