Treasury extends laundering rules to casinos.

New rules to discourage money laundering at casinos are in effect, signalling a new era of Bank Secrecy Act enforcement.

The casino regulations are the first of an expected string of compliance rules for nonbanks. Such rules, to be issued over the next year, will require competitors to operate under the same rules as the banking industry.

Under the rules, casinos must establish and maintain written compliance programs that focus on training employees and using computer systems.

Casinos also must record more information about a customer and his transactions when a deposit or credit account is opened.

Although the regulations went into effect Thursday, casinos will have six months to comply.

These rules are a scaled-down version of regulations proposed in March 1993.

The Treasury Department withdrew some provisions that state regulators and the casino industry said would be too expensive to implement.

In announcing the rules, Treasury Secretary Lloyd Bentsen said the agency tried not to place an unreasonable compliance burden on the casinos.

"Our goal is to shape effective counter-money laundering policies while reducing unnecessary regulatory burden," Mr. Bentsen said."

The Financial Crimes Enforcement Network, the arm of Treasury that administers the secrecy act, is expected to bring Indian gaming establishments under the law.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER