US casino firm Caesars Entertainment has reportedly been forced to pay the US Financial Crimes Enforcement Network and Nevada Gambling Control Board $9.5 million following money laundering violations that were uncovered.
The violations took place at Caesars Palace in its VIP high roller rooms, which are famous for drawing in Chinese punters who play baccarat. The violations allowed punters to potentially move large sums of money while remaining anonymous, which could lead to money being sent to organized crime rings.
Caesars struck an $8 million settlement with the FCEN, and a $1.5 million penalty to Nevada's state gaming regulator to settle the issue. Additionally, Caesars will submit to external audits and testing of its anti-money laundering systems in the future, as well as provide additional training to employees on the matter.
Commenting on the fine the Financial Crimes Enforcement Network said, "Despite the elevated money laundering risks present in these salons, Caesars failed to impose appropriate AML scrutiny, which allowed some of the most lucrative and riskiest financial transactions to go unreported. Caesars also marketed these salons through branch offices in the U.S. and abroad, particularly in Asia, but failed to adequately monitor transactions, such as large wire transfers, conducted through these offices for suspicious activity."