Title: Tinian Dynasty Hotel & Casino Faces $75 Million Penalty for Money Laundering Lapses
The Financial Crimes Enforcement Network (FinCEN) Announces Intent to Penalize Hong Kong Entertainment (Overseas) Investments, Ltd.
The Financial Crimes Enforcement Network (FinCEN), a branch of the US Department of the Treasury, has announced its intention to levy a civil penalty of $75 million against Hong Kong Entertainment (Overseas) Investments, Ltd., doing business as Tinian Dynasty Hotel & Casino, in the Northern Mariana Islands. The proposed penalty stems from the casino’s willful violations of the Bank Secrecy Act (BSA) and associated regulations.
Significant AML Protocol Lapses at Tinian Dynasty Casino
According to FinCEN, the investigation was initiated due to the casino’s apparent disregard for Anti-Money Laundering (AML) protocols. The casino had neglected to develop and implement an effective AML program, as required by the BSA, from 2008 onwards.
Failure to Report Cash Transactions
Tinian Dynasty repeatedly failed to report cash transactions exceeding the $10,000 threshold, as mandated by the BSA. According to the assessment, these transacts went unreported for an extended period, contributing to the ineffective AML program.
Suspicious Transactions Unaddressed
Moreover, the casino failed to detect and report suspicious transactions in a timely manner. This allowed potentially illicit funds to go undetected, compromising the integrity of the financial system.
Contribution to BSA Evasion by IRS-CI Agents
During an undercover investigation, Tinian Dynasty assisted IRS-CI agents in evading BSA reporting requirements. The casino failed to report suspicious transactions as required, allowing the agents to proceed without triggering suspicion or notification.
Director of FinCEN’s Statement on the Violations
Jennifer Shasky Calvery, the Director of FinCEN, made a statement regarding the casino’s actions, stating, “The assessment details numerous instances where Tinian Dynasty wilfully disregarded its obligations under the Bank Secrecy Act. These violations undermine the efficacy of the BSA and put the US financial system at risk.”
BSA and AML Regulations
The Bank Secrecy Act and its implementing regulations mandate that casinos develop and implement written AML programs and report suspicious activities. Tinian Dynasty’s failure to comply with these requirements amounted to a pattern of willful non-compliance. The penalty serves as a reminder of the US government’s dedication to maintaining robust AML regulations.
Publication and Comment Period
The assessment will be published in the Federal Register, becoming effective upon publication. Interested parties may submit written comments before the comment period closes.
Summary
- FinCEN intends to impose a $75 million civil penalty on Tinian Dynasty Hotel & Casino in the Northern Mariana Islands.
- Due to significant lapses in its Anti-Money Laundering (AML) protocols, the casino failed to develop and implement a compliant AML program and evaded Bank Secrecy Act (BSA) reporting requirements when dealing with undercover agents.
- The casino repeatedly failed to report cash transactions over the $10,000 threshold and failed to detect and report suspicious activities in a timely manner.
- Director of FinCEN, Jennifer Shasky Calvery, emphasized the severe nature of these violations, stating that they undermine the effectiveness of the BSA and put the US financial system at risk.
- The assessment will be published in the Federal Register, and a comment period will be open for interested parties.