Wynn Resorts To Pay $130 Million For Illegal Financial TransactionsCasino Company Ran Afoul Of Anti-Money Laundering Laws |
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Wynn Resorts has admitted to allowing unlicensed financial companies to transfer money to the company’s Las Vegas casino, accepting a $130 million forfeiture as part of an agreement reached with federal authorities last week.
The agreement allows the company to avoid a criminal investigation and requires Wynn to make significant changes to meet regulatory requirements.
“Wynn Las Vegas agreed to forfeit $130 million in funds involved in the transactions at issue and continue to make certain enhancements to its compliance program,” the company noted in a filing with the Securities and Exchange Commission. “The DOJ agreed that, subject to Wynn Las Vegas’s fulfillment of its obligations under the NPA (non-prosecution agreement), it will not bring any criminal charges against Wynn Las Vegas concerning the subject matter of its investigation, subject to standard reservations of rights and certain reserved claims.”
‘Convoluted Transactions’ In The Spotlight
Federal authorities noted that these foreign transaction companies were working to get around U.S. law. Casinos are required to report large transactions to help curb money laundering efforts. U.S. Attorney Tara McGrath said this was probably the biggest forfeiture ever by a casino based on admissions of criminal wrongdoing.
“Casinos, like all businesses, will be held to account when they allow customers to evade U.S. laws for the sake of profit,” she said. “Federal oversight seeks to prevent illegal funds from tainting legitimate businesses, ensuring that casinos offer a clean, thriving, and safe entertainment option.”
Investigators said Wynn regularly contracted with third-party independent agents acting as unlicensed money transmitting businesses to recruit foreign gamblers. The agents transferred the gamblers’ funds through companies, bank accounts, and other third-party operators in Latin America and elsewhere, and ultimately into a Wynn-controlled bank account. The funds were then deposited into the casino cage with employees later crediting the account of each individual gambler.
“The convoluted transactions enabled foreign gamblers at WLV (Wynn Las Vegas) to evade foreign and U.S. laws governing monetary transfer and reporting,” the U.S. Attorney’s Office noted.
Wynn has broken off ties with the companies believed to be responsible for the questionable transactions as well as with former employees alleged to be part of the scheme.
“Several former employees facilitated the use of unlicensed money transmitting businesses, which both violated our internal policies and the law, and for which we take responsibility,” Wynn noted to the Associated Press.
The news comes after Las Vegas casinos have come under more pressure regarding money laundering. Former MGM Resorts executive Scott Sibella pleaded guilty in May to violating federal anti-money laundering laws.
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