Financial institutions’ ability to share suspicious activity reports (“SARs”) within the corporate organizational structure serves as an important tool for Bank Secrecy Act compliance and risk avoidance.  FinCEN began 2017 by reminding casinos of their ability to share information under this rule. Subject to certain limitations, casinos may share with domestic parents and affiliates suspicious activity reports and related information under the Bank Secrecy Act (“BSA”).  FIN-2017-G001 (January 4, 2017).  Under this guidance, such sharing…

On the day after his appointment in August 2016, the Associate Director for Enforcement for the Financial Crimes Enforcement Network (FinCEN), Thomas Ott, addressed the National Title 31 Suspicious Activity & Risk Assessment Conference in Las Vegas, Nevada.  In his remarks, he (1) covered recent enforcement actions, (2) sought to dispel myths or misconceptions about suspicious activity reports (SARs), (3) provided context for the value to law enforcement of the Title 31 reporting information,…

Attributing observed deficiencies to a lack of a culture of compliance, FinCEN has again targeted a casino for willful violations of the anti-money laundering (“AML”) provisions of the Bank Secrecy Act (“BSA”).  This time the casino in FinCEN’s sights is the Sparks Nugget, Inc. d/b/a John Ascuaga’s Nugget (“Sparks Nugget”), located in Sparks, Nevada.  In resolving this matter with FinCEN, Sparks Nugget entered into a consent agreement that, among other things, provided for a…

At the end of February 2016, the Consumer Financial Protection Bureau (CFPB) announced nine priority goals for the next two years.  According to its press release, the CFPB set these priorities by balancing the amount of consumer harm observed against the Bureau’s capacity to eliminate or mitigate that harm.  The CFPB identified three core tools available to reach these goals:  (1) setting the “basic rules of the road,” (2) educating consumers and (3) holding…

Just in time for Christmas, the Financial Crimes Enforcement Network (FinCEN), the financial industry (including casinos and card clubs) regulator, announced its first-ever enforcement action against a card club, California’s Oaks Card Club (Oaks). The enforcement action, which carried a penalty of $650,000, is the latest in a string of actions against gaming enterprises and is yet another reminder of the importance of implementing and maintaining an effective anti-money laundering (AML) compliance program. As FinCEN…

This week the Financial Crimes Enforcement Network (FinCEN) announced a Consent Agreement that imposed an $8 million civil penalty against Desert Palace, Inc. d/b/a Caesars Palace. Caesars first disclosed the investigation in SEC filings in late 2013. The investigation grew out of a 2012 audit performed by FinCEN’s examiner, the Internal Revenue Service Small Business/Self-Employed Division (IRS SB/SE). In addition to the penalty, the Agreement made factual determinations and imposed “undertakings” – remedial measures –…

In early June 2015, FinCEN assessed a civil money penalty on the Tinian Dynasty Hotel & Casino, located in the Northern Mariana Islands, an archipelago to the east of the Philippines (don’t feel bad if you click here to learn a little more). Being a U.S. territory, the Northern Marianas are subject to federal regulation. The civil money penalty was surprising for two reasons: first, that FinCEN would investigate and fine a casino unfamiliar even…