California Casino fined $900,000 by FinCEN for lax money laundering controls

The owners of the Lake Elsinore Hotel and Casino in Southern California have agreed to a $900,000 civil penalty to resolve numerous violations of the law. Bank Secrecy Act (BSA) This has emerged from an enforcement investigation by FinCEN.

Lake Elsinore Hotel and Casino admitted to years of failure to complete CTRs and SARs, according to FinCEN

In the consent orderSahara Dunes Casino, LP, the parent company of Lake Elsinore, admits to years of failure to complete Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs).

“Lake Elsinore operated for years without the most basic AML controls, putting its customers and the U.S. financial system at risk and depriving law enforcement of information about suspicious activity,” said Andrea Gacki, director of FinCEN.

“This action should serve as a reminder that all financial institutions – regardless of their type or size – must comply with their obligations under BSA and FinCEN regulations.”

Additionally, Lake Elsinore’s willful violations of the BSA continued for a period of four and a half years. FinCEN found that the violations resulted from decisions made by card club management.

FinCEN’s consent order detailed that management of Lake Elsinore Hotel and Casino failed to comply with the federal BSA and its requirements to report CTRs and SARs between at least September 7, 2014, and February 11, 2019.

The California casino will be subject to an AML program review

Federal law requires card rooms to submit CTRs when a customer completes ‘cash in’ or ‘cash out’ transactions totaling more than $10,000 in a 24-hour period. Cardrooms must also identify and report suspicious transactions involving money transfers of $5,000 or more through a SAR registry.

In addition to the civil penalty, Lake Elsinore will also be subject to an AML program review. Failure to file CTRs and SARs is a serious crime in the Golden State.

According to the press releaseThis action will be FinCEN’s first resolution alongside the California Department of Justice – Bureau of Gambling Control (CA-BGC).

As delegated by the Secretary of the Treasury, FinCEN “has authority to impose civil penalties.”

In addition, the agency has “(o)general authority for enforcement and compliance” with the BSA and its implementing regulations.

FinCEN’s Enforcement and Compliance Division is responsible for investigating major violations of the BSA.