FinCEN, a branch of the Treasury Department, said that the Sparks Nugget willfully chose not to file Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs), an oversight that was in violation of the anti-money laundering provisions of the Bank Secrecy Act (BSA).<\/p>\n
The casino also instructed its compliance officer not to interact with the IRS\u2019 Bank Secrecy Act auditors, while a management committee established to determine whether to file SARs \u201cnever held a single meeting.\u201d<\/p><\/blockquote>\n
The government agency said that the Nugget was guilty of hundreds of bookkeeping violations and AML compliance failures. Since the passage of the BSA in 1970, and then the Money Laundering Control Act in 1986, all US financial institutions have been obligated to file a CTR to FinCEN for any transaction over $10,000, as well as to report any seemingly suspicious transactions.<\/p>\n
BSA eliminated an individual\u2019s right to financial privacy by declaring that a financial institution would no longer be held liable for declaring financial transactions to the authorities.<\/p>\n
\u201cSparks Nugget had a systemic breakdown in its compliance program,\u201d said FinCEN Director Jennifer Shasky Calvery in a statement. \u201cDespite the fact that it hosted convicted embezzlers and had been repeatedly alerted to suspicious transactions by its own [BSA]\u00a0compliance manager, Sparks saw no need to re-think its (AML) defenses.\u201d<\/p>\n
Ascuaga-Wolfhound Case Dismissed<\/strong><\/h2>\nNews of the FinCEN investigation first came to light in court documents in February, as part of judicial proceedings brought by the Ascuaga family against the new owners. The Ascuagas claimed they were owed $500,000 under the purchase and sale agreement of the Nugget to Wolfhound, but that case was dismissed by a judge this week, coincidentally on the same day that FinCEN made its announcement.<\/p>\n
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Ascuaga, who had been appointed to the Nevada Gaming Commission board by Governor Brian Sandoval ten months before her resignation, claimed she “did not purposely hold back information from the governor,\u201d whose office had been unaware of the investigation.<\/p>\n<\/div>\n
She was resigning, she said, “out of deep respect for the Nevada Gaming Commission and to not allow myself to become an unnecessary distraction from the important regulatory oversight work it does.”<\/p>\n","protected":false},"excerpt":{"rendered":"
The Sparks Nugget in northern Nevada has been fined $1 million for \u201csystematic and egregious\u201d violation of its anti-money laundering (AML) laws, the Financial Crimes Enforcement Network (FinCEN) said this week. The violations occurred while the casino was under the management of former Nevada Gaming Commissioner Michonne Ascuaga, who was forced to resign from the […]<\/p>\n","protected":false},"author":42,"featured_media":35018,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,10,13,18],"tags":[],"acf":[],"yoast_head":"\n
Reno Sparks Nugget Fined $1 Million for Lax Money-Laundering Controls<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n