RegAlert2009-07-01 | FinCEN Advisory – FIN-2009-A003Added · Updated
Structuring by Casino Patrons and Personnel (FinCEN Advisory – FIN-2009-A003)
Casinos and card clubs are required to implement compliance programs reasonably designed to deter, detect, and report structuring by patrons and personnel to evade Bank Secrecy Act reporting and recordkeeping requirements. If structured transactions involve or aggregate to at least $5,000 in funds or other assets, the entity must file a Suspicious Activity Report with full disclosure of subjects and relationships. FinCEN may impose civil money penalties of up to $25,000 per day for failure to maintain an adequate anti-money laundering program, up to the greater of the transaction amount or $25,000 for reporting violations, and up to the amount of coins and currency involved in structuring.
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1
Advisory
FIN-2009-A003
Issued: July 1, 2009
Subject: Structuring by Casino Patrons and Personnel The Financial Crimes Enforcement Network (“FinCEN”) recently received information from law enforcement and regulatory authorities that certain casino personnel may have complied with requests from patrons to evade, or provided instructions to patrons on how to evade, reporting and recordkeeping requirements under the Bank Secrecy Act (“BSA”). 1 It appears that casino patrons and personnel may have engaged in “structuring” certain transactions to evade such requirements. 2 The BSA prohibits any person, for the purpose of evading the requirement to report currency transactions or evading recordkeeping requirements under the BSA, from causing or attempting to cause a casino not to file a currency transaction report, to file a currency transaction report with material misstatements or omissions, not to maintain records required under the BSA, or to maintain these records in a form that is incomplete or inaccurate. 3 FinCEN is issuing this advisory to remind casinos and card clubs that structuring is unlawful, and that such activity can give rise to significant civil and criminal penalties under the BSA. 4 FinCEN is authorized to impose civil money penalties against casinos violating the BSA, and the U.S. Department of Justice prosecutes criminal violations of the BSA and related money-laundering statutes. 5 Casinos subject to the BSA are required to develop and implement a compliance program reasonably designed to manage the risk of illicit activity and ensure compliance with the BSA and its implementing regulations.6 1 See 31 U.S.C. § 5311 et seq. and 31 C.F.R. Part 103. The BSA requires casinos to file reports, properly identify customers conducting transactions, and maintain appropriate records of transactions. These reports and records are highly useful in criminal, tax, or regulatory investigations or proceedings, 2 Structuring is a money laundering and terrorist financing “placement” technique. Structuring includes, among other activities, the “breaking up” of transactions for the purpose of evading BSA currency transaction reporting requirements. See 31 U.S.C. § 5324 and 31 C.F.R. §§ 103.11(gg) and 103.63. 3 See 31 U.S.C. § 5324. 4 See 31 U.S.C. §§ 5321 and 5324. 5 See 31 U.S.C. §§ 5321(a)(4) and 5324 and 31 C.F.R. §§ 103.57(e) and 103.63; see also 18 U.S.C. §§ 1956 and 1957 (money laundering violations). 6 See 31 C.F.R. §§ 103.64 and 103.120(d).
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Lineage: In force
Source: Financial Crimes Enforcement Network — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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