Casinos and banks must work more closely with one another and with federal regulators to prevent money laundering, attendees at the Bank Secrecy Conference Act in Las Vegas were told.
FBI Deputy Assistant Director Chris Warrener told the audienceat the South Point Casino on May 17 that closer collaboration among bankers and casino operators could prove mutually beneficial, while helping to prevent crime and costly penalties.
The banking and gaming industries are highly regulated and share many of the same money-laundering risks. Working together and with government officials could help to produce more effective regulations and greater efficiency and compliance among the money-handlers.
Juan Zarate, author ofTreasury’s War: The Unleashing of a New Era of Financial Warfare, said the federal government years ago increased its regulation and grip on the banking industry and is making a similar move in the gaming industry.
The idea is to instill what Zarate calls a “culture of compliance” and that likely mean more pressure on casinos and potentially more stringent penalties at a time when online gaming and international markets are creating new opportunities and challenges.
An example of the increased federal regulatory regulation and greater penalties for non-compliance is the recent $9.5 million fine the Federal Crimes Enforcement Network levied on Caesars International.
FINcen said Caesars was too loose with its cash and wagering requirements for its high rollers, making it too easy for them to anonymously wager large sums and not properly monitoring cash transactions.
Federal law requires reporting of any transactions exceeding $10,000. If casinos suspect criminal activity might be tied to any transaction totaling at least $5,000, they also must report that transaction.
While Caesars is a big operation, similar violations often occur at smaller gaming operations across the county. Generally, if a criminal can find a casino or even a card club with loose transaction monitoring, that casino becomes a likely target for unlawful cash transaction.
That being the case, federal regulators said the same rules apply for all gaming operations, no matter how small they might be.
