June 4, 2015
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The Wrecking Crew by Thomas Frank
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June 4, 2015
|Tinian Dynasty Hotel and Casino ©2008 W. L. Doromal|
The U.S. Department of Treasury Financial Crimes Enforcement Network slapped a $75 million fine on the Tinian Dynasty Hotel and Casino for violations of the Bank Secrecy Act and related regulations. FinCEN concluded that Tinian Dynasty willfully violated the BSA’s program and reporting requirements from 2008 through the present by failing to develop and implement an anti-money laundering program; failing to report transactions involving currency in amounts greater than $10,000, in violation of 31 U.S.C § 5313 and 31 C.F.R. § 1021.311; and failing to detect and adequately report suspicious activities and transactions in a timely manner, in violation of 31 U.S.C. § 5318(g) and 31 C.F.R. § 1021.320.
The assessment states that the Tinian Dynasty failed to develop and implement an anti money laundering program to assure compliance to the BSA.
From the assessment:
No member of Tinian Dynasty staff was delegated responsibility for day-to-day compliance with the BSA, and the Casino failed to develop and implement policies,procedures, and internal controls designed to ensure compliance with the BSA. Tinian Dynasty never conducted any independent testing of the Casino’s systems to ensure compliance and did not have sufficient procedures in place to detect or report suspicious transactions. Further, casino personnel were not trained in BSA recordkeeping requirements or in identifying, monitoring, and reporting suspicious activity.The assessment: details the violations regarding the requirement to report transactions:
"From at least May 3, 2012, through March 4, 2013, Tinian Dynasty engaged in a pattern of accommodating gamblers who desired to conduct transactions with large amounts of cash without the Casino reporting their transactions. During a criminal investigation, undercover agents, posing as casino patrons, told Tinian Dynasty’s Casino Manager and its VIP Services Manager that they planned to gamble large amounts of money and expressly requested that the Casino not report their gaming transactions to the government.
On May 3, 2012, the VIP Manager, who was responsible for implementing casino marketing programs and servicing the Casino’s most valued customers, assured an undercover agent posing as the New York-based representative of a Russian businessman that his client could bring large amounts of currency and that the Casino would not file reports related to the client’s activity at the Casino. When two other undercover agents (“UCA-1” and “UCA-2”) arrived at the Casino on February 28, 2013, the VIP Manager and other Casino employees assisted them with the following transactions, each of which required the filing of a CTR:Concerning the final charge, violation to report suspicious activity the assessment states:
Before being indicted for BSA violations in May 2013, Tinian Dynasty had never filed a single Suspicious Activity Report. The undercover agents, while posing as Casino patrons, asked casino managers to allow them to make deposits to the Casino without the Casino filing any reports with the government regarding the transactions. The BSA explicitly defines attempts to avoid reporting requirements as suspicious activity that requires a Suspicious Activity Report to be filed. 31 C.F.R. § 1021.320(a)(2)(ii). Notwithstanding this requirement, Tinian Dynasty not only assisted the undercover agents in evading the BSA reporting requirements, but it failed to report the activity as suspicious.The report concludes with the statement: FinCEN has determined that the penalty in this matter will be $75 million. (Read the report below.)
There are so many issues related to this employer of foreign workers. In addition to the investigation by the Department of Treasury there is an ongoing case that has been filed by the US Government against the casino in the US District Court of the Northern Marianas.
Yesterday the U.S. filed a notice to present intertwined evidence in its case that includes this finCEN assessment.
From the notice:
Evidence to be offered:
a. Prior CTR filings with FinCEN
b. Failure to register junket operators with the Tinian Gaming Casino Commission
c. Outstanding tax debt to the CNMI government
d. Failure to pay wages to Dynasty employees during the time period of the charged conduct
e. Representations to Bank of Guam of compliance with CTR
f. Circulation of Anti-Money Laundering policies in 2004 and 2008
g. Correspondence with FinCen in 2000 wherein FinCen definitely states that the Bank Secrecy Act applies to the Dynasty CasinoWill any of these outcomes impact the foreign workers?