\nBy HOWARD STUTZ
\n\tLAS VEGAS REVIEW-JOURNAL
\n\tThe head of the federal agency assigned to investigate money laundering crimes told a Las Vegas audience Thursday the casino industry can discover the origins of a high roller\u2019s bankroll in the same way a casino host determines that customer\u2019s favorite wine or music preferences.<\/p>\n
\tJennifer Shasky Calvery, director of the Financial Crimes Enforcement Network, known as FinCEN, said the casino industry has the same responsibility as traditional financial institutions to police and report any suspicious customer activity, which includes investigating the source of large gambling funds.<\/p>\n
\tDuring her keynote address at the Bank Secrecy Act Conference at Red Rock Resort, Calvery said the casino industry can employ investigative measures used to determine the social needs and desires of a high-end customer to that same player\u2019s large bankroll.<\/p>\n
\t\u201cCasinos invest heavily in sophisticated monitoring tools to track a wide range of customer activities and to understand their customers\u2019 preferences,\u201d Calvery said. \u201cThese same kinds of monitoring and customer service capabilities can and should be leveraged for (anti-money laundering) purposes.\u201d<\/p>\n
\tThe gaming industry has come under fire by FinCEN, which is overseen by the U.S. Treasury Department, to comply with anti-money laundering regulations found in the act. Calvery said casinos have the capability and technology needed to investigate the source a gambler\u2019s funds.<\/p>\n
\tThe daylong conference was organized by the State Bar of Nevada, but the audience of 500 included more that just attorneys. Casino executives and gaming regulators also listened to the Calvery\u2019s opening remarks. The speech was her second public appearance in Las Vegas since September, when she delivered similar remarks at the Global Gaming Expo.<\/p>\n
\tCasino leaders have worried that subjecting the industry to the same requirements as banks and other financial institutions could keep certain high rollers away from the gaming tables.<\/p>\n
\t\u201cUnfortunately, there is no one-size-fits-all approach to (anti-money laundering laws),\u201d Calvery said.<\/p>\n
\tShe also warned the casino operators not to jeopardize their reputations or violate the law in order to \u201cplease\u201d a customer.<\/p>\n
\t\u201cA casino\u2019s capability for knowing its customers\u2019 preferences and credit information, combined with your security technology, can and should be leveraged to piece together relevant information to understand your customers\u2019 source of funds,\u201d Calvery said.<\/p>\n
\tThe American Gaming Association, which co-sponsored the conference, has held meetings between casino leaders and FinCEN representatives, which Calvery acknowledged during her talk as being \u201cproductive.\u201d<\/p>\n
\tAGA President Geoff Freeman introduced Calvery and said after the talk that her remarks \u201cwere a big step forward\u201d from the comments she made at G2E.<\/p>\n
\tHe said FinCEN is developing a \u201cclearer understanding\u201d of how the industry operates. The interaction with the gaming leaders, Freeman said, has been helpful to both sides.<\/p>\n
\t\u201cOne senior-level casino official said to me today a single customer is not worth our license,\u201d Freeman said.<\/p>\n
\tCalvery said in September the industry was being watched.<\/p>\n
\tIn August, Las Vegas Sands Corp., struck a deal with federal prosecutors and paid a $47.4 million settlement to avoid criminal charges in connection with a 2006 and 2007 investigation into money laundering by a customer at The Venetian.<\/p>\n
\tCaesars Entertainment Corp. disclosed in October that Caesars Palace was being investigated for possible money laundering allegations.<\/p>\n
\tCalvery said Thursday casinos weren\u2019t \u201csimple cash-intensive businesses.\u201d She called casinos \u201ccomplex financial institutions\u201d that extend credit and conduct financial transactions worth millions of dollars every day.<\/p>\n
\t\u201cCasinos must continue their progress in thinking more like other financial institutions to identify (anti-money laundering risks),\u201d Calvery said.<\/p>\n
\tUnder the Bank Secrecy Act, casinos are required to report currency transactions by any person of more than $10,000 in cash each day. In addition, casinos are required to report suspicious customer activity when it comes to those financial transactions.<\/p>\n
\tShe said the buying and cashing in of chips by customers are not always simple transactions.<\/p>\n
\t\u201cWhile the vast majority of these transactions are purely for entertainment purposes, casinos can serve as the vehicle for the use, movement, and concealment of ill-gotten gains,\u201d Calvery said.<\/p>\n
\t\u201cThis is a risk inherent in all financial institutions.\u201d<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
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