Banks cooperate with casinos
Many banks are cooperating with the gaming industry, but they also maintain strict policies against money laundering. The American Gaming Association, or FinCEN, is stepping up its enforcement of Title 31, a part of the Bank Secrecy Act, in response to heightened regulatory concerns. While the organization has not yet issued large fines against casinos, it has strengthened its enforcement capabilities and given potential future penalties greater teeth. Here are some examples of ways that banks cooperate with the casino industry.
In recent years, increasing regulatory scrutiny of the financial industry has led to more attention on the casino industry, which often accepts high-roller players. Recently, the Justice Department fined Las Vegas Sands Corp. $47 million for anti-money laundering lapses in its handling of a case involving a high-roller named Zhenli Ye Gon. While the Mexican pharmaceutical magnate made multiple deposits into the casino, there was no indication of his affiliation with currency exchange companies. The staff did not suspect him of making illegal transactions. Meanwhile, Zhenli Ye Gon is still fighting extradition to Mexico and faces drug trafficking charges.
The investigation into money-laundering by banks has been ongoing for some time. The Financial Crimes Enforcement Network (FinCEN) monitors the financial system for evidence of money laundering. While the spokesman for the FBI declined to comment, he noted that the casinos click here do not provide detailed information to bankers. This is a major problem for the industry and should be addressed. If banks don't cooperate with the gambling industry, they will become more vulnerable to fraud.
The FBI and FinCEN, the government agency that focuses on money laundering, are increasingly scrutinizing the casino industry. As a result, they are partnering more closely with casino operators. A European gaming company signed a $125 million credit facility with Goldman Sachs in October, and in 2018, it bought the stratosphere, a casino in Mexico. These moves are part of the U.S. crackdown on money laundering.
The U.S. government has put pressure on large global banks to stop providing credit to gamblers. However, banks do not want to cut off these customers. The money they provide to these individuals is essential to the gambling industry. As such, stopping them from giving credit to gamblers would be detrimental for both the banks and the gambling companies. The underlying revenue from gambling is estimated to be between thirty and sixty percent of the total industry.
Although money-laundering is not new, it has been the subject of Hollywood movies for years. The banks are not expected to cooperate with the gambling industry, but they have made deals with other industries. Among them, the casino industry has been investigated for anti-money-laundering lapses. These institutions have also been accused of allowing people to use their credit cards for illegal purposes. If the US government wants to stop money laundering, they should follow the same rules as the banks.