The owners of the Lake Elsinore Hotel and Casino in Southern California have agreed to a $900,000 civil penalty to resolve numerous violations of the law. Bank Secrecy Act (BSA) that an enforcement investigation by FinCEN discovered.

Lake Elsinore Hotel and Casino Admitted Years of Failure in Achieving CTR and SAR, FinCEN Says

In the consent orderSahara Dunes Casino, LP, the parent company of Lake Elsinore, admits to years of failure to file Currency Transaction Reports (CTR) and Suspicious Activity Reports (SAR).

“Lake Elsinore operated for years without the most basic AML controls, putting its customers and the U.S. financial system at risk and denying law enforcement information about suspicious activity,” said FinCEN Director Andrea Gacki .

“This action should serve as a reminder that all financial institutions, regardless of type or size, must comply with their obligations under BSA and FinCEN regulations.”

Additionally, Lake Elsinore’s willful violations of the BSA continued for more than four and a half years. FinCEN found that the violations resulted from decisions made by the card club’s management.

FinCEN’s consent order specified that between at least September 7, 2014 and February 11, 2019, management of the Lake Elsinore Hotel and Casino failed to comply with the federal BSA and its reporting requirements CTR and SAR.

California casino to face AML program review

Federal law requires card rooms to deposit CTRs when a customer makes “cash out” or “cash out” transactions totaling more than $10,000 in a 24-hour period. Card rooms must also identify and report suspicious transactions involving money transfers of $5,000 or more through a SAR deposit.

In addition to the civil penalty, Lake Elsinore will also be subject to review by the AML program. Failure to file a CTR and SAR is a serious offense in the Golden State.

According to the press releaseThis action will be FinCEN’s first resolution alongside the California Department of Justice – Bureau of Gambling Control (CA-BGC).

By delegation from the Secretary of the Treasury, FinCEN has “the authority to impose civil penalties.”

Additionally, the office has “general enforcement and compliance authority” with the BSA and its implementing regulations.

FinCEN’s Enforcement and Compliance Division is responsible for investigating major violations of the BSA.