It has been widely reported that Caesars Entertainment Corp. has been fined a total $9.5 million dollars for its failure to enforce anti-money laundering controls at its Las Vegas casino, Caesars Palace. The casino company admitted to openly permitting wealthy customers to gamble anonymously in private rooms at the casino and also confessed it had repeatedly failed to monitor transactions at its international marketing offices in Hong Kong and other locations.
The corporation and the US Financial Crimes Enforcement Network (FinCEN) have agreed on an $8 million settlement to be paid to federal regulators for these wilful violations of the Bank Secrecy Act (BSA). In addition to the federal settlement, Caesars agreed to pay $1.5 million to Nevada regulators for breaking state laws. The penalty amount owed by Caesars Entertainment Corp. could increase, as the company still faces a criminal investigation by the IRS for its poor anti-money laundering operations.
The Caesars scandal surfaced amid a FinCEN crackdown on anti-money laundering controls at US casinos.
Casinos, like banks, are required by law to file currency transaction reports (CTRs) for cash transactions enacted by any person in a single day totalling more than $10,000. They are also required to file suspicious activity reports.
FinCEN’s director Jennifer Shasky Calvery had previously warned casinos operating overseas that it was important for them to be particularly thorough when it comes to customer cash and the filing of required reports.
Caesars is now the third casino to be fined in the US this year, along with the Tinian Dynasty Hotel & Casino (Northern Mariana Islands) and the Trump Taj Mahal Casino Resort (Atlantic City).
Accuity has worked with a number of casinos to screen against participation in illicit financial activities. To find out more about how Accuity’s suite of data, solutions and services can help to reduce risk, visit the AML screening solutions page.