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With Growth of Legalized Gambling, Some States See Need for New AML Laws
By Colby Adams
printFueled by the need to fill budgetary coffers, the expansion of casinos in the United States will likely foster another sort of growth-more state anti-money laundering laws. Since 2008, at least 10 states have voted to legalize or expand casino gambling. Increasingly, those states will seek to expand complementary anti-money laundering laws and rules, in part to win seized criminal assets, said James Freis, the former director of the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN). "One of the aspects of criminalizing money laundering per se is that you don't necessarily need to show a definitive link between the...
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The U.S. gaming sector's string of recent compliance penalties have prompted many casinos to rethink how they implement anti-money laundering controls, according to Kim McCabe, founder of Henderson, NV-based consultancy KMC, LLC.
The U.K. Gambling Commission may have called on firms last month to improve their anti-money laundering controls, but the concerns over how best to do that are not new to the nation's gaming sector.
Nevada state regulators will levy a monetary penalty and set conditions on Caesars Entertainment's gaming license as part of an anti-money laundering settlement, according to an individual with knowledge of the plan.
A Northern Mariana Islands casino will forfeit approximately $3 million to the U.S. Justice Department under the terms of a deal reached Thursday that will spare the gambling operation criminal charges.
The U.S. Treasury Department imposed a $75 million fine Wednesday against a casino in the Northern Mariana Islands, less than a year after banning its former VIP services manager over related infractions.
A bankruptcy court cleared the way Wednesday for a $10 million fine against Trump Taj Mahal Casino Resort for poor compliance with recordkeeping and reporting rules, the U.S. Treasury Department said.
Ahead of the issuance of expected federal guidance, a top lobbying group for America's casinos Thursday outlined how the gaming industry should best shield itself from money launderers.
Federal officials are investigating four of Nevada's most well-known casinos for potential violations of the Bank Secrecy Act, according to sources familiar with the matter and a regulatory disclosure published Monday.
Leaders of a senate panel Wednesday called for stronger oversight of online gaming to reverse the effects of a 2011 U.S. Justice Department memorandum that loosened restrictions on the industry.
An agreement between a global online gaming company and an Atlantic City casino to offer Internet wagering in New Jersey faces an uphill battle to gain the necessary approval from state regulators, say analysts.
In the wake of a Florida crackdown on cashless gambling operations, some large banks have begun reviewing their relationships with Internet sweepstakes parlors, say compliance officers.
Several of the largest casinos in Nevada are strengthening their Patriot Act controls in the wake of an investigation into Las Vegas Sands Corp. for insufficiently vetting risky clients.
Federal examiners have found anti-money laundering compliance problems related to customer due diligence and regulatory reporting at two large casinos in Las Vegas, according to individuals familiar with the matter.
The conviction of a payment processor accused of aiding Internet gambling companies highlights the compliance hurdles anti-money laundering officers face when maintaining accounts for merchant transactions, say bank and law enforcement officials.
A U.S. Justice Department memorandum clearing the way for online gaming may exacerbate compliance woes for banks operating under a 2006 anti-gambling law, say attorneys and industry groups.
The U.S. Treasury handed down a $250,000 civil money penalty against a small Minnesota tribal casino on Thursday for "extensive violations" of anti-money laundering rules over a three-year period.
Poor compliance efforts by gambling operations are translating into regulatory risks for the financial institutions that bank them, according to anti-money laundering consultants.
The expansion of the casino industry to new states throughout the U.S. increases the likelihood that gaming will grow as a vehicle for money laundering, particularly since the federal agency charged with its oversight is understaffed, according to law enforcement officials and former IRS auditors.
Casinos that implement risk-based anti-money laundering programs will rely heavily on the experience of their compliance officers, an intergovernmental watchdog said Tuesday.
The U.S. Treasury Department issued guidance on the obligations of casinos under the Bank Secrecy Act, including procedures for filing currency transaction reports when the business lacks complete information on customers.