![]() In addition, FinCEN identified many compliance concerns. The emphasis on the undertakings is consistent with FinCEN’s remedial enforcement approach, and it is conceivable that the cost of the undertakings will exceed the fine. In addition to the penalty, the Agreement made factual determinations and imposed “undertakings” – remedial measures – intended to bring Caesars into compliance with the requirements of the Bank Secrecy Act (BSA) and its implementing regulations under Title 31. The investigation grew out of a 2012 audit performed by FinCEN’s examiner, the Internal Revenue Service Small Business/Self-Employed Division (IRS SB/SE). ![]() Caesars first disclosed the investigation in SEC filings in late 2013. FIN-2007-G006 is reproduced at ♤4-889 (ip access user).This week the Financial Crimes Enforcement Network (FinCEN) announced a Consent Agreement that imposed an $8 million civil penalty against Desert Palace, Inc. It was not a money transmitter, FinCEN continued, since it could not transmit funds to third parties or to customer accounts at financial institutions other than the one where the customer's account was located. Rather, it merely dispensed currency in exchange for a fee. As described by FinCEN, an owner-operator was not a currency dealer because it did not buy or sell currency for the customer. The guidance applies to owner-operators of ATMs that provide only currency withdrawals and balance inquiry services. "Non-bank owner-operators of automated teller machines that offer limited services are not money services businesses (MSBs) under the Bank Secrecy Act, according to new guidance by the Financial Crimes Enforcement Network. As to who would be responsible for CTRs related to currency transactions for an independently operated ATM, perhaps the answer would be here: If the above is true, and the question is 'should we (the FI) be aggregating the transactions described in (2) along with his other transactions, then the answer would be no. ![]() He makes withdrawals from that ATM (the one which he owns), which are distinguishable somehow in the core banking system This person owns an independent ATM andĢ. Please let me make sure I have the scenario correct:ġ. Our core system does not pick up the ATM withdrawals, so do we need to aggregate the totals to reflect the ATM transactions for CTR purposes? The ATM withdrawals are from his account with us, the ATM withdrawals show up on our cash transaction reports along with his miscellaneous debits. Since an advice can be negotiated at the cage in a manner of ways other than cash, it would not be subject to reporting by the financial institution.Īlthough your example may seem like double-dipping, I would argue that it's not much different than an individual withdrawing $12,000 over-the-counter at a bank and purchasing $12,000 in poker chips with the cash at a casino later that day. (Footnote 27) The withdrawer has to take the advice to the cage to negotiate it. In my experience reviewing customer activity, larger casino transactions made via credit/debit cards are typically withdrawn from bank accounts as POS purchases while pure cash withdrawals are generally smaller and transacted like any other non-bank ATM cash withdrawal.Īccording to FinCEN, casinos provide an advice at the ATM for anything above the customer's ATM card limit. Realistically, ATM card limits and common casino practices would prevent the financial institution from knowing how much cash, if any, was involved for single transactions large enough for reporting. In theory, both the casino and the bank would need to report the transactions.
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