Casino risk assessment example

casino risk assessment example

Past practice, particularly in the tribal casino area, has been to rsa national lotto results use financial or gaming commission auditors to conduct independent testing.
Also, a casino or card club may need to consider the risk management principles that it applies in its operational areas when assessing and managing its BSA risk profile.
1 Locations designated as hifcas enable a concentration of law enforcement efforts at the federal, state, and local governmental levels.While labor is one of the largest expenses, senior leadership must understand and support the need for adequate staffing.Creating an effective governance structure is another aspect of how the organizations leadership can show their support.In order to change the culture in any organization it begins at the top with its leadership.Manager training/meetings, creation of BSA/AML quick reference guide.The challenge is how to effectively make this happen.An organizations top leadership must set such culture.Moreover, testing results provide management the keys to improving the program prior to an Internal Revenue Service BSA examination.
If not, it could result in taking on unnecessary risk.
Unfortunately, casinos lag behind in this area.
This type of reporting structure will generally exclude the BSA officer from executive-level meetings.
It is a sound practice for a casino or card club to periodically review its risk indicators or factors to assure sufficiency and effectiveness.
Information Sharing, relevant information from the various departments within the organization should be shared with compliance staff to further BSA/AML efforts.
The executive board that oversees BSA compliance should question or challenge a BSA officers decisions, particularly on policy that seems unreasonable.In conclusion, an effective BSA compliance program must reflect potential money laundering and terrorist financing risks arising from a casino's or card club's products, services, customer base, and geographical location.The BSA officer needs to be at the ground level of these discussions in order to assess the money laundering risks and implement controls.Casino hosts notes relating to patrons.Casinos or card clubs may need to update their risk indicators to reflect changes in operational risk profiles (.g., revised products and services, new products and services, changes with regard to opening and closing accounts or closer monitoring of accounts, new categories of accounts.Department of State's annual International Narcotics Control Strategy Report (incsr)4, Designated as jurisdictions of primary money laundering concern or subject to special measures through regulations issued by FinCEN, pursuant to Section 311 of the USA patriot Act5, or Sanctioned by the Office of Foreign Assets.For casinos, a suspicious activity report (SAR) working group should also be considered at the management level.For a good reason, casinos were brought under the BSA umbrella but an organizations leadershipto fully appreciate compliance effortsneeds to have a working understanding of how it functions.A casino or card club may need to consider, as appropriate, the following factors when developing and implementing risk-based policies, procedures, internal controls and systems to comply with the BSA: Gross annual gaming revenue gagr of the business as well as gagr by type.The casino industry has some roots in organized crime where transparency and assisting the government in their efforts to deter crime and identify suspects was not considered a virtue.The American Gaming Association estimates that there are over 1,000 casinos (commercial and tribal) and card clubs operating in the.S.The main point to consider is that if the information is available and would be useful for compliance purposes, compliance personnel should have access.Whether the casino or card club is located in a town or city center, or in a more remote location; Whether the casino or card club is located near.S.Developing and maintaining a culture of compliance has not been top of mind in the casino industry.

Independent Testing, the compliance program should be effective and tested by an independent and competent third party.