How tribal casinos benefit from a compliant anti-money laundering program

To help prevent money laundering and terrorist activity, Title 31 of the Bank Secrecy Act (BSA) requires casinos that generate more than $1 million in annual gaming revenue to establish and implement a comprehensive risk-based anti-money laundering (AML) program.

Criminal organizations can target tribal casinos to launder money. Because money laundering continues to proliferate, and criminal strategies evolve quickly, the Financial Crimes Enforcement Network (FinCEN) bureau of the U.S. Department of the Treasury supports other agencies to enforce the BSA.

FinCEN works with various federal agencies including the IRS to examine financial institutions, including casinos, to assess their AML program for compliance with the BSA.

Casinos must maintain a robust AML program, a complex process requiring considerable internal resources.

What does title 31 require?

To comply with Title 31, casinos are required to establish and implement a written, risk-based AML program that provides for the following:

• A system of internal controls to assure compliance with the BSA
• Designation of a dedicated compliance officer
• Training for appropriate personnel
• Independent testing for compliance
• Procedures that indicate the requirements to verify a person’s identity, suspicious activity reporting, and record retention
• Compliance with Section 1021.210 of Title 31 of the Code of Federal Regulations (CFR) if using automated programs.

Casinos must also complete and file a FinCEN Form 112 currency transaction report (CTR) for each currency transaction of more than $10,000 in aggregate in a single gaming day. CTRs must be filed within 15 calendar days following the day the transaction occurs.

Currency transactions can include:

• Front money deposits
• Payments on markers or any form of credit
• Redemptions of chips or other gaming instruments