The American Gaming Association (AGA) has announced they are preparing to update the guidelines regarding money laundering to ensure that gambling facilities are taking their role more seriously. Anti-money laundering regulations must be followed in order for a facility to maintain licensing for operation.
The decision comes at a time when the Hawaiian Gardens card room was hit with a $3.1 million fine plus a $2.8 million penalty to pay in the future to continue their operations. The facility was found to have violated regulations regarding money laundering practices.
Back in 2014, the AGA created what they call best practices, policies for the gambling industry to follow to prevent money laundering from taking place within their venue. The polices have now grown to be known as the Best Practices for Anti-Money Laundering Compliance. The directive updates are being made after the AGA receive input from the Financial Crimes Enforcement Network, a division of the United States Treasury Department.
The polices are not rules or regulations, not even laws due to the fact that the AGA does not have a legal stance over casino facilities. However, they do act as a lobbying group for the United States gambling industry, if the casinos in operation follow their parameters. The group has a better shot at seeing positive changes to the industry if casinos fall in line with their policies.
One big change expected in the update is a transition from cash-enabled transactions to digital ones only. Since cash flow will be reduced dramatically within casinos due to the digital approach, the opportunity to launder cash will be reduced.
According to Bill Miller, the president of the American Gaming Association, the change will give law enforcement as well as regulators the tools needed to easily identify the background of a customer as well as source the money that is being wagered. They will also be able to pinpoint early warning signs regarding criminal activity.