AML/CTF AND COMPLIANCE ISSUES CATCHING OUT USA CASINOS TOO
A recent spate of fines from regulators have been levied to several high-profile USA Casinos over AML compliance. This is a much broader issue worldwide that may bring in higher compliance requirements for AML / CTF and sanctions.
Wynn Resorts
In Nevada, Wynn Resorts is preparing to settle past money-laundering failures. The state’s gambling regulator, the Nevada Gaming Control Board (NGCB), announced a stipulated settlement with the company that supposedly agreed to pay $5.5m to settle alleged anti-money laundering violations, including “unregistered international money transmissions.”
The penalty comes from a deal Wynn struck last year with the US Department of Justice. The company agreed to give up $130 million and dodge criminal charges. The problem was the resort’s link to unlicensed global money-transfer networks that channelled funds to its Las Vegas casino. The breaches lasting over ten years, included letting international guests move money and allowing proxy betting against Nevada’s gambling laws.
Resorts World Las Vegas
Resorts World Las Vegas and its affiliated companies paid a $10.5 million fine after an investigation showed the casino permitted gamblers tied to illegal bookmaking operations and individuals with federal felony convictions to play freely at the venue. The settlement, filed with Nevada’s gambling regulator, is the second-largest fine in state history.
MGM Resorts International
MGM Resorts International will pay Nevada regulators $8.5 million after a long investigation into breaches of anti-money laundering (AML) rules linked to two convicted illegal bookmakers.
The $8.5 million fine follows a 10-count complaint by the Nevada Gaming Control Board over former MGM Grand President’s failure to stop illegal gambling and mishandling of large cash transactions at MGM Grand and The Cosmopolitan
The complaint states that Sibella gave the go-ahead for free perks — including rooms, food, and shows to an illegal bookie. Investigators found that the bookie bet millions in dirty money over hundreds of visits, often bringing big wads of cash to the casino in plain bags. Even though there were warning signs and concerns within the company going back to 2015, nobody filed any official reports.
The probe also revealed that another convicted bookmaker, bet at MGM properties from 2015 to 2018. Even though MGM executives doubted Bowyer’s financial credibility as early as 2015, they let him keep playing until 2018.
Australian Casinos
Local Australian casinos, The Star and Crown, have both received significant fines for breaches over similar issues. Looking at the fines received by the USA casinos, the fines that were levied by Australian States look like a money grab. While their aim was to make a statement about govt expectations of conforming with compliance regulations (as they should) the fines for Australian casinos have almost put them out of business and forced company buyouts in order for them to survive.
The Star Entertainment Group has faced total fines amounting to approximately $265.14 million for various compliance breaches.
Breakdown of Fines
- ASIC Compliance Issues: The Star has provided for fines totalling $150 million due to allegations of non-compliance with anti-money laundering laws raised by the Australian Securities and Investments Commission (ASIC)
- NSW Independent Casino Commission (NICC): Following inquiries known as the Bell Inquiries, The Star received a $15 million fine imposed by the NICC for serious compliance breaches and operational issues
- Queensland Casino Compliance: The Star was also fined $100 million by the Queensland authorities for compliance failures, following an independent review that concluded the casino was unsuitable to hold its licenses due to unlawful behaviour and governance issues
- Minor Fines: In addition, The Star faced a $140,000 fine for offenses related to illegally using credit cards for gambling activities at its Brisbane and Gold Coast casinos. This included multiple charges of facilitating prohibited transactions
Crown Casino
Crown Casino has been fined a total of approximately $570 million for various compliance breaches, including $450 million for anti-money laundering violations and $120 million for responsible gambling breaches.
Breakdown of Total Fines
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- Anti-Money Laundering Breach:
- Responsible Gambling Breaches:
- Additional Minor Breaches:
