Casino Industry Given Fresh Guidelines to Thwart Illicit Fund Transactions
The American Gaming Association (AGA) has revised its Best Practices for Anti-Money Laundering (AML) Compliance, with the updated document now running 44 pages in length. These new guidelines are based on the latest guidance from the US Treasury Department's Financial Crimes Enforcement Network (FinCEN), National Money Laundering Risk Assessment, and Office of Foreign Assets Control.
In a significant move, the AGA's updated guidelines contain a more robust risk assessment section and an enhanced "Know Your Customer/Customer Due Diligence" section. These changes aim to strengthen the gaming industry's efforts to combat money laundering and other illicit activities.
The new guidelines emphasise the importance of a risk-based approach, where gaming operators identify high-risk customers and conduct enhanced due diligence where necessary. Compliance with these guidelines is crucial for gaming operators to avoid potential fines and reputational damage. Non-compliance can lead to significant penalties, as seen in regulatory actions taken against non-compliant businesses.
In his first G2E address as AGA head, Bill Miller expressed the need to give law enforcement and regulators new tools to more easily identify customer backgrounds, the source of money being gambled, and early warning signs of potential criminal activity. Miller also suggested that cashless gaming would improve the player experience and increase a casino's ability to identify attempted money laundering.
Casinos, like banks and other financial institutions, must complete Suspicious Activity Reports when a customer is suspected of trying to skirt regulations of the Bank Secrecy Act, such as in the case of "structuring." Casinos generating $1 million or more in annual gross gaming revenue are required to file a Currency Transaction Report (CTR) for any transaction of $10,000 or more in a 24-hour timeframe, under the Bank Secrecy Act.
It's worth noting that casinos have different risk profiles, and individual casinos may depart from or modify procedures in the AGA's Best Practices document, or develop supplemental or alternative procedures. The AGA's guidelines are designed to provide a framework for effective AML programs, including customer due diligence, risk assessments, and transaction monitoring.
The article was posted on December 9, 2019, at 02:20h, and was last updated at 03:01h. The author of the article is Devin O'Connor, as indicated by the Twitter handle @CasinoorgDevinORead. AGA President Bill Miller believes it's time to bring the gaming industry into current technological times and begin to reduce its reliance on cold, hard cash. The AGA's updated guidelines are part of this ongoing effort to modernize the gaming industry's AML regulations.
- The AGA's updated guidelines, part of an effort to modernize the gaming industry's AML regulations, emphasize the need for casinos to adopt technological tools that can help in identifying customer backgrounds, the source of money being gambled, and early warning signs of potential criminal activity.
- In line with the AGA's updated guidelines, which aim to strengthen the gaming industry's efforts to combat money laundering, a shift towards cashless gaming is proposed, as it could improve the player experience and increase a casino's ability to identify attempted money laundering.
