Coming off a tumultuous 12 months that saw four Las Vegas Strip casinos fined a combined $32 million, the Nevada Gaming Commission Thursday signed off on anti-money-laundering regulations to hold executives in the industry accountable.
The new regulations recommended by the Gaming Control Board come with backing from the Nevada Resort Association and follow fines of $7.8 million against Caesars Entertainment, $8.5 million against MGM Resorts International, and $10.5 million for Resorts World Las Vegas, all three dealing with illegal bookmakers. Wynn Resorts was fined $5.5 million for unregistered international money transfers.
“As has been well documented, we’ve had a rather eventful and difficult year in the area of money laundering,” Gaming Control Board Chair Mike Dreitzer told the Commission. “It’s appropriate, given the other matters heard before the Commission today, that we take up these regulations.” Dreitzer was referring to the inclusion of illegal bookmaker Matthew Bowyer in the state’s Black Book; Bowyer was behind incidents that helped lead to the casino fines.
Dreitzer said they worked with Nevada casinos and AML experts from around the country in crafting the new regulations. It wasn’t an easy task and they came up with what he called a “good package” of regulations and changes in administration.
“It’s an important day to put an exclamation point on this,” Dreitzer said. “We heard and saw loud and clear that there were limitations and concerns with AML. The industry has seen that and resoundingly got around this culture of compliance and the need to put compliance over commerce. We believe these (regulations) will make real differences.”
Senior Deputy Attorney General Mike Somps said the regulations are designed to bolster the regulatory requirements in the anti-money-laundering space.
Under the changes, the Gaming Control Board will review and approve individuals whose primary responsibility is oversight of the casino’s AML program, along with employees within player development. Those with responsibility for the casino’s compliance will be required to be licensed and there will be restrictions on business entities funding patron’s wagering activities. The AML compliance officers are deemed to be gaming employees and require registration.
Companies are required to report to the Board when an employee is separated for violations related to the AML policies. There are now requirements for secondary representatives with AML training for independent agents and requirements of reporting dismissal for AML violations, Somps said.
The independent agents also have limits on engaging in gaming transactions on behalf of clients. Casinos can withhold compensation to independent agents if the source of funds hasn’t been established for their client, Somps said.
The regulations will be phased in with some to take effect immediately, some in four months, and some in six months.
“These regulations changes are part of an overall package that the Board is pursuing in relation to anti-money laundering and those non-regulatory efforts include independent agent applications and acknowledgment forms,” Somps said.
In addition, a video has been created with the assistance of Board member George Assad, who’s been outspoken in his criticism of the industry about AML compliance, to present to independent agents to highlight their responsibilities.
“These are way overdue,” said Commission member George Markantonis of the regulations. “I wish we would have done this a while back.”
Nick Langenfeld, vice president of corporate compliance and anti-money-laundering officer for Station Casinos, said the updates reflect a collaborative effort between regulators and the gaming industry for more than a year.
“The collaborative process demonstrated a shared and unwavering commitment to ensuring Nevada’s regulatory framework remains both principled and practical.”
