Money laundering rules worry Nevada gamers

Friday, Sept. 24, 1999 | 10:41 a.m.

The U.S. Treasury Department announced Thursday a new anti-money laundering strategy that could potentially place casinos under the strict transaction reporting requirements now applied to banks.

Under current regulations, casinos must now report any "suspicious activity" involving amounts of currency exceeding $3,000. However, casino decisions as to what constitutes suspicious activity are now not subject to federal review; the new strategy would give the federal government that oversight outside of Nevada.

The new strategy would not apply to Nevada casinos, which now operate under an exemption that allows the state's Gaming Control Board and Gaming Commission to oversee money laundering strategy and enforcement.

Frank Fahrenkopf, president of the American Gaming Association, said that requirements for banks shouldn't be applied to casinos. He added that Thursday's announcement constituted nothing new, and instead reflect ideas that have been proposed by the federal government since last year.

"One day a customer may be at Caesars, the next day at Harrah's," Fahrenkopf said. "Banks have ongoing regular relationships with customers. Casinos are different."

Although the new strategy won't apply to Nevada, Fahrenkopf said it is still something that should concern the state's gaming industry.

"What my concern is, if they adopt a tougher rule outside of Nevada, you can be damn sure they'll come to the Gaming Control Board and Commission and say, 'We want you to conform to the same standard everyone else lives under,"' Fahrenkopf said.