Published on: October 28, 2024, 08:31 AM.
Last updated on: October 28, 2024, 08:31 AM.
A California casino has been fined heavily to settle allegations by the Financial Crimes Enforcement Network (FinCEN) against the commercial card room.
The owners of the Lake Elsinore Hotel and Casino in Southern California have agreed to a $900,000 civil monetary penalty to address violations of the Bank Secrecy Act as alleged by FinCEN.
Lake Elsinore lacked basic anti-money laundering controls, endangering its customers and the U.S. financial system according to FinCEN Director Andrea Gacki.
FinCEN, a bureau under the U.S. Treasury Department, focuses on combating money laundering, terrorist financing, and financial crimes.
The fine imposed on Lake Elsinore cardroom is the first such action against a casino by FinCEN in six years.
Sahara Dunes Casino, LP, owned by the Kingston family, members of a Utah polygamous sect, admitted to years of BSA violations.
Lack of Anti-Money Laundering Controls
Lake Elsinore Hotel and Casino, one of 82 licensed California cardrooms, had 22 non-house-banked table games like poker, with players taking turns as dealer.
Between September 2014 and February 2019, the casino failed to comply with the Bank Secrecy Act’s CTR and SAR reporting requirements.
The law mandates businesses like cardrooms to file CTRs for transactions over $10,000 and report suspicious transactions through SAR filings.
Financial institutions provide crucial information through these reports to combat money laundering, terrorist financing, and other financial crimes.
The investigation found Lake Elsinore casino lacked a designated BSA compliance monitor, with the Compliance Committee lacking relevant experience.
Mandatory Monitoring
To address AML violations, the casino must hire an independent AML consultant approved by FinCEN to enhance its AML program.
Upon compliance with BSA, the total fine of $850,000 will be reduced by $50,000.