Nevada Enhances Casino Anti-Money Laundering Regulations and Explores Further Steps

Nevada Gaming Commission Implements Strengthened Anti-Money Laundering Rules

Earlier this week, the Nevada Gaming Commission (NGC) introduced updated regulations to enhance anti-money laundering (AML) efforts within the state’s casinos. These new rules were unanimously approved during the NGC’s April 23 meeting and focus on tightening oversight and accountability among casino compliance officers.

The reforms require individuals in charge of AML programs and player development roles at casinos to be vetted and licensed by regulators. Additionally, AML compliance officers are now officially classified as gaming employees, mandating their registration accordingly. New limitations also apply to entities financing players’ wagering activities.

Casinos must notify the Nevada Gaming Control Board (NGCB) when employees are dismissed over AML violations. The updated regulation also calls for secondary AML-trained representatives for independent agents and details mandatory reporting for dismissals linked to AML concerns.

NGCB’s George Assad Proposes Expanded Measures to Combat Money Laundering

While welcoming the recent regulation changes, NGCB member George Assad advocates for further initiatives to strengthen AML enforcement. He emphasized creating a whistleblower program that rewards individuals who provide information leading to the identification and capture of money laundering offenders. Assad suggested a reward of 1% of seized funds, illustrating that significant cases, such as those involving $10 million, could result in substantial payouts for whistleblowers.

Assad also calls for stricter enforcement of source-of-funds investigations and enhanced Know Your Customer (KYC) protocols, pushing beyond superficial compliance checks to ensure genuine scrutiny.

Reflecting on past decisions, Assad criticized Nevada’s 2007 choice to transfer oversight of Regulation 6A to the federal government, labeling it as ineffective. He pointed out how many suspicious activity reports submitted by Nevada casinos get overlooked amid the volume of national reports.

Consequently, Assad recommends integrating vital aspects of Regulation 6A back into state rules to enable the NGCB to monitor suspicious financial activities more effectively, especially those involving high-profile gamblers and significant foreign transactions.