A new rule being considered by the U.S. Treasury Department would require casinos to vet the source of funds used by high-rolling gamblers.
According to a Reuters report citing two unnamed sources, the move, being considered by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), would require the additional reporting by casinos as a way to target the use of casinos for money-laundering operations.
Under current law, casinos are only required to report suspicious activity, such as players depositing large sums and cashing out after only gambling briefly. The new rule, which could take more than a year to complete, would require casinos to get more information about certain customers to shed light on high-risk transactions such as international wires and large cash deposits.
In September, FinCEN director Jennifer Shasky Calvery, speaking at the Global Gaming Expo, warned casinos to pay particular attention to potential money laundering. “When some casinos say that probing their customers about their activities outside of the casino will drive customers away, I sense that they feel that it is not their responsibility to protect their institutions, and our financial system as a whole, from being used by illicit actors,” Calvery said at the conference. “You ask your customers many questions about their preferences; you can and should get information about their sources of funds to meet your obligations to identify and report suspicious activity.”
“There is a sea change afoot with respect to casinos and U.S. government focus on them because there is just so much money that moves through casinos,” former federal prosecutor Kevin Rosenberg told Reuters. “The message is, ‘You’ve got to get a lot better than you have been.’”
FinCEN officials declined to comment to Reuters on any impending new rules.
The American Gaming Association says it is working with FinCEN to develop a method of compliance. In a letter to the industry, AGA President and CEO Geoff Freeman said the organization is “actively engaged with key federal agencies on this matter, seeking opportunities for partnership and underscoring our industry’s commitment to a culture of compliance.”
He laid out key AGA-led activities including:
• Coalescing financial and compliance leaders across the industry to learn from one another and present a united perspective to regulators;
• Developing industry best practices to serve as a roadmap to meeting federal expectations;
• Engaging in frequent dialogue with the federal agency (U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN)) responsible for examining compliance with federal anti-money laundering laws; and
• Collaborating with other regulated industries to share information and gather new approaches to addressing the government’s needs.
“We look forward to developing a strong partnership that enables the government to achieve its goals and our industry to continue to provide a world-class entertainment experience.,” Freeman concluded.
