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

Lake Elsinore Hotel and Casino Admitted to Years of Failure to Complete CTRs and SARs, According to FinCEN

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

“Lake Elsinore operated for years without the most basic AML controls, putting its customers and the American 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 their type or size—must comply with their obligations under the BSA and FinCEN regulations.”

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

FinCEN’s consent order stated that from at least September 7, 2014 through February 11, 2019, management of the Lake Elsinore Hotel and Casino failed to comply with the federal BSA and its requirements to report CTRs and SARs.

The California casino will undergo an AML program review

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

In addition to the civil monetary penalty, Lake Elsinore will also be subject to an AML program review. Failure to file CTRs and SARs is a serious crime in the Golden State.

right press releasethis action will be FinCEN’s first resolution alongside the California Department of Justice – Bureau of Gaming Control (CA-BGC).

As delegated by the Secretary of the Treasury, FinCEN has “authority to impose civil penalties.”

In addition, the office has “(o)general authority for enforcement and compliance” with the BSA and its implementing regulations.

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