PART II INTERNAL CONTROLS requirements and
approval of specified internal controls |
| Appointment of independent officer |
| 3. Every licensee or applicant for a licence shall appoint from among its employees an internal auditor or a compliance officer who is not involved in the establishment or implementation of any of its internal controls to be an independent officer for the purposes of these Regulations. |
| Internal controls requirements for casino operator |
4.—(1) For the purposes of section 138(1) of the Act, the internal controls requirements applicable to a casino operator shall be the Internal Controls Code for Casino Operators issued by the Authority to all casino operators, as amended from time to time, subject to such modification or waiver as may be made or allowed by the Authority under paragraph (2).| (2) The Authority may, on the application of a casino operator or an applicant for a casino licence, modify or waive any provision of the Internal Controls Code for Casino Operators as it applies to that casino operator or applicant, subject to such conditions as the Authority may impose. |
|
| Licensed international market agent to implement system of internal controls |
| 5. A licensed international market agent shall establish and implement a system of internal controls for its operations in relation to casino marketing arrangements which satisfies the internal controls requirements applicable to it. |
| Internal controls requirements for licensed international market agent |
6.—(1) The internal controls requirements applicable to a licensed international market agent shall be the Internal Controls Code for International Market Agents issued by the Authority to all licensed international market agents, as amended from time to time, subject to such modification or waiver as may be made or allowed by the Authority under paragraph (2).| (2) The Authority may, on the application of a licensed international market agent or an applicant for an international market agent licence, modify or waive any provision of the Internal Controls Code for International Market Agents as it applies to that licensed international market agent or applicant, subject to such conditions as the Authority may impose. |
|
| Specified internal controls to be approved by Authority |
7.—(1) The Authority may, by notice in writing, require a licensee or an applicant for a licence to submit to the Authority for approval of such part or parts of the licensee’s or applicant’s system of internal controls as the Authority may specify in the notice (referred to in these Regulations as ‘‘specified internal controls’’).| (2) A licensee shall not conduct or permit the conduct of the licensee’s operations unless the approval of the Authority has been obtained in writing for all of the specified internal controls relating to those operations. |
|
| Approval of specified internal controls |
8.—(1) A submission to the Authority for approval of the specified internal controls may be made by a licensee or by an applicant for a licence, and shall comprise the following documents:| (a) | a description of the specified internal controls in the form prescribed by the Internal Controls Code for Casino Operators or the Internal Controls Code for International Market Agents, as the case may be; | | (b) | a statement by the Board of Directors of the licensee or the applicant that the specified internal controls of the licensee or the applicant, as the case may be, satisfy the internal controls requirements applicable to the licensee or the applicant if a licence is issued thereto; | | (c) | a statement by an independent officer of the licensee or the applicant that ––| (i) | the specified internal controls of the licensee or the applicant, as the case may be, satisfy the internal controls requirements applicable to the licensee or the applicant if a licence is issued thereto; and | | (ii) | the licensee or the applicant has adequate systems and processes in place to implement the specified internal controls; and |
| | (d) | such other documents as the Authority may require in that particular case to determine whether the specified internal controls satisfy the internal controls requirements applicable to the licensee or the applicant. |
| (2) The Authority may, on the application of a licensee or an applicant for a licence, modify or waive the requirements under paragraph (1) in any particular case. |
| (3) The Authority shall not approve any specified internal controls submitted by a licensee or an applicant unless it is of the opinion that the specified internal controls satisfy or will satisfy all the internal controls requirements applicable to the licensee or the applicant. |
(4) The Authority may — | (a) | approve all or part of the specified internal controls submitted by a licensee or an applicant subject to such conditions as the Authority may impose; or | | (b) | reject all or part of the specified internal controls submitted by a licensee or an applicant if any of the specified internal controls do not satisfy any of the internal controls requirements applicable to the licensee or applicant. |
|
| (5) A licensee shall ensure that all approved internal controls are implemented in accordance with the approval of the Authority and such conditions as may be imposed under paragraph (4)(a). |
|
| Change to approved internal controls |
9.—(1) A licensee which intends to change any approved internal controls (other than a change required by the Authority under regulation 10) must apply to the Authority for approval of the proposed change at least 30 days before the effective date of the proposed change, or within such shorter period as the Authority may allow in any particular case. (2) A submission to the Authority for approval of a proposed change to the approved internal controls shall comprise the following documents:| (a) | a description of the proposed change to the approved internal controls in the form prescribed by the Internal Controls Code for Casino Operators or the Internal Controls Code for International Market Agents, as the case may be; | | (b) | a statement by the Board of Directors of the licensee that the proposed change to the approved internal controls satisfies the internal controls requirements applicable to the licensee; | | (c) | a statement by an independent officer of the licensee that ––| (i) | the proposed change to the approved internal controls satisfies the internal controls requirements applicable to the licensee; and | | (ii) | the licensee has adequate systems and processes in place to implement the proposed change; and |
| | (d) | such other documents as the Authority may require in that particular case to determine whether the proposed change to the approved internal controls satisfies the internal controls requirements applicable to the licensee. |
|
| (3) The Authority may, on the application of a licensee, modify or waive the requirements under paragraph (2) in any particular case. |
| (4) The Authority shall not approve the change to the approved internal controls proposed by a licensee under this regulation unless it is of the opinion that the proposed change satisfies or will satisfy the internal controls requirements applicable to the licensee. |
(5) The Authority may — | (a) | approve the change to the approved internal controls proposed by a licensee under this regulation subject to such conditions as the Authority may impose; or | | (b) | reject all or part of the change to the approved internal controls proposed by a licensee under this regulation if the proposed change does not satisfy any of the internal controls requirements applicable to the licensee. |
|
| (6) The approved internal controls of a licensee shall be amended or substituted to the extent that a submission under this regulation (including the accompanying documents and any revised internal controls) is approved by the Authority. |
| (7) A licensee shall ensure that any change to its approved internal controls is implemented in accordance with the approval by the Authority under this regulation, and any conditions imposed thereon. |
|
| Amendment of internal controls requirements by Authority |
10.—(1) Subject to paragraph (8), where the Authority amends any internal controls requirement, a licensee shall, within 30 days after the date it is notified of the amendment, or such longer period as the Authority may allow in any particular case, submit to the Authority for approval such proposed changes to its approved internal controls as may be necessary to satisfy the internal controls requirements so amended by the Authority and applicable to the licensee. | (2) The Authority shall not approve the proposed changes to the approved internal controls of a licensee unless it is of the opinion that the proposed changes satisfy or will satisfy the internal controls requirements so amended by the Authority and applicable to the licensee. |
(3) The Authority may — | (a) | approve all or part of the changes to the approved internal controls proposed by the licensee subject to such conditions as the Authority may impose; or | | (b) | reject all or part of the changes to the approved internal controls proposed by the licensee if the proposed changes thereto do not satisfy the internal controls requirements amended by the Authority and applicable to the licensee. |
|
| (4) The approved internal controls of a licensee shall be amended or substituted to the extent that a submission under this regulation (including any accompanying document and revised internal controls) is approved by the Authority. |
| (5) A licensee shall ensure that the proposed changes to its approved internal controls are implemented in accordance with the approval by the Authority under this regulation, and any conditions imposed thereon. |
(6) Notwithstanding paragraph (1), where a licensee considers that the amendment by the Authority to the internal controls requirements applicable to the licensee requires no change to its approved internal controls, the licensee shall, unless a modification or waiver under paragraph (7) is obtained, submit the following documents to the Authority: | (a) | a statement by the Board of Directors of the licensee that the approved internal controls of the licensee, without any change, satisfy the internal controls requirements amended by the Authority and applicable to the licensee; | | (b) | a statement by an independent officer of the licensee that ––| (i) | the approved internal controls of the licensee, without any change, satisfy the internal controls requirements amended by the Authority and applicable to the licensee; and | | (ii) | the licensee has adequate systems and processes in place to implement its approved internal controls; and |
| | (c) | such other documents or information as the licensee may consider necessary to explain why no changes are required to its approved internal controls in any particular case, notwithstanding the amendment by the Authority to the internal controls requirements applicable to the licensee. |
|
| (7) The Authority may, on the application of a licensee, modify or waive the requirement to submit any document or other information referred to in paragraph (6)(a), (b) and (c) in any particular case. |
| (8) The Authority may, on the basis of the documents or other information provided by the licensee under paragraph (6), allow the licensee to dispense with the submission under paragraph (1). |
|
|