PART 1021—RULES FOR CASINOS AND CARD CLUBS Authority: 12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314 and 5316-5332; title III, sec. 314, Pub. L. 107-56, 115 Stat. 307; sec. 701, Pub. L. 114-74, 129 Stat. 599. Source: 75 FR 65812, Oct. 26, 2010, unless otherwise noted. Subpart A—Definitions § 1021.100 Definitions. Refer to § 1010.100 of this chapter for general definitions not noted herein. To the extent there is a differing definition in § 1010.100 of this chapter, the definition in this section is what applies to part 1021. Unless otherwise indicated, for purposes of this part: (a) Business year (b) Casino account number (c) Customer (d) Gaming day (e) Machine-readable Subpart B—Programs § 1021.200 General. Casinos and card clubs are subject to the program requirements set forth and cross referenced in this subpart. Casinos and card clubs should also refer to subpart B of part 1010 of this chapter for program requirements contained in that subpart which apply to casinos and card clubs. § 1021.210 Anti-money laundering program requirements for casinos. (a) Requirements for casinos. (b) Compliance programs. (2) At a minimum, each compliance program shall provide for: (i) A system of internal controls to assure ongoing compliance; (ii) Internal and/or external independent testing for compliance. The scope and frequency of the testing shall be commensurate with the money laundering and terrorist financing risks posed by the products and services provided by the casino; (iii) Training of casino personnel, including training in the identification of unusual or suspicious transactions, to the extent that the reporting of such transactions is required by this chapter, by other applicable law or regulation, or by the casino's own administrative and compliance policies; (iv) An individual or individuals to assure day-to-day compliance; (v) Procedures for using all available information to determine: (A) When required by this chapter, the name, address, social security number, and other information, and verification of the same, of a person; (B) The occurrence of any transactions or patterns of transactions required to be reported pursuant to § 1021.320; (C) Whether any record as described in subpart D of part 1010 of this chapter or subpart D of this part 1021 must be made and retained; and (vi) For casinos that have automated data processing systems, the use of automated programs to aid in assuring compliance. Subpart C—Reports Required To Be Made By Casinos and Card Clubs § 1021.300 General. Casinos and card clubs are subject to the reporting requirements set forth and cross referenced in this subpart. Casinos and card clubs should also refer to subpart C of part 1010 of this chapter for reporting requirements contained in that subpart which apply to casinos and card clubs. § 1021.310 Reports of transactions in currency. The reports of transactions in currency requirements for casinos are located in subpart C of part 1010 of this chapter and this subpart. § 1021.311 Filing obligations. Each casino shall file a report of each transaction in currency, involving either cash in or cash out, of more than $10,000. (a) Transactions in currency involving cash in include, but are not limited to: (1) Purchases of chips, tokens, and other gaming instruments; (2) Front money deposits; (3) Safekeeping deposits; (4) Payments on any form of credit, including markers and counter checks; (5) Bets of currency, including money plays; (6) Currency received by a casino for transmittal of funds through wire transfer for a customer; (7) Purchases of a casino's check; (8) Exchanges of currency for currency, including foreign currency; and (9) Bills inserted into electronic gaming devices. (b) Transactions in currency involving cash out include, but are not limited to: (1) Redemptions of chips, tokens, tickets, and other gaming instruments; (2) Front money withdrawals; (3) Safekeeping withdrawals; (4) Advances on any form of credit, including markers and counter checks; (5) Payments on bets; (6) Payments by a casino to a customer based on receipt of funds through wire transfers; (7) Cashing of checks or other negotiable instruments; (8) Exchanges of currency for currency, including foreign currency; (9) Travel and complimentary expenses and gaming incentives; and (10) Payment for tournament, contests, and other promotions. (c) Other provisions of this chapter notwithstanding, casinos are exempted from the reporting obligations found in this section and § 1021.313 for the following transactions in currency or currency transactions: (1) Transactions between a casino and a dealer in foreign exchange, or between a casino and a check casher, as those terms are defined in § 1010.100(ff) of this chapter, so long as such transactions are conducted pursuant to a contractual or other arrangement with a casino covering the financial services in paragraphs (a)(8), (b)(7), and (b)(8) of this section; (2) Cash out transactions to the extent the currency is won in a money play and is the same currency the customer wagered in the money play, or cash in transactions to the extent the currency is the same currency the customer previously wagered in a money play on the same table game without leaving the table; (3) Bills inserted into electronic gaming devices in multiple transactions (unless a casino has knowledge pursuant to § 1021.313 in which case this exemption would not apply); and (4) Jackpots from slot machines or video lottery terminals. [75 FR 65812, Oct. 26, 2010, as amended at 76 FR 43597, July 21, 2011] § 1021.312 Identification required. Refer to § 1010.312 of this chapter for identification requirements for reports of transaction in currency filed by casinos and card clubs. § 1021.313 Aggregation. In the case of a casino, multiple currency transactions shall be treated as a single transaction if the casino has knowledge that they are by or on behalf of any person and result in either cash in or cash out totaling more than $10,000 during any gaming day. For purposes of this section, a casino shall be deemed to have the knowledge described in the preceding sentence, if: Any sole proprietor, partner, officer, director, or employee of the casino, acting within the scope of his or her employment, has knowledge that such multiple currency transactions have occurred, including knowledge from examining the books, records, logs, information retained on magnetic disk, tape or other machine-readable media, or in any manual system, and similar documents and information, which the casino maintains pursuant to any law or regulation or within the ordinary course of its business, and which contain information that such multiple currency transactions have occurred. § 1021.314 Structured transactions. Refer to § 1010.314 of this chapter for rules regarding structured transactions for casinos. § 1021.315 Exemptions. Refer to § 1010.315 of this chapter for exemptions from the obligation to file reports of transactions in currency for casinos. § 1021.320 Reports by casinos of suspicious transactions. (a) General. (2) A transaction requires reporting under the terms of this section if it is conducted or attempted by, at, or through a casino, and involves or aggregates at least $5,000 in funds or other assets, and the casino knows, suspects, or has reason to suspect that the transaction (or a pattern of transactions of which the transaction is a part): (i) Involves funds derived from illegal activity or is intended or conducted in order to hide or disguise funds or assets derived from illegal activity (including, without limitation, the ownership, nature, source, location, or control of such funds or assets) as part of a plan to violate or evade any Federal law or regulation or to avoid any transaction reporting requirement under Federal law or regulation; (ii) Is designed, whether through structuring or other means, to evade any requirements of this chapter or of any other regulations promulgated under the Bank Secrecy Act; (iii) Has no business or apparent lawful purpose or is not the sort in which the particular customer would normally be expected to engage, and the casino knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction; or (iv) Involves use of the casino to facilitate criminal activity. (b) Filing procedures What to file. (2) Where to file. (3) When to file. (c) Exceptions. (d) Retention of records. (e) Confidentiality of SARs. (1) Prohibition on disclosures by casinos General rule. (ii) Rules of Construction. (A) The disclosure by a casino, or any director, officer, employee, or agent of a casino, of: ( 1 ( 2 (B) The sharing by a casino, or any director, officer, employee, or agent of the casino, of a SAR, or any information that would reveal the existence of a SAR, within the casino's corporate organizational structure for purposes consistent with Title II of the Bank Secrecy Act as determined by regulation or in guidance. (2) Prohibition on disclosures by government authorities. (f) Limitation on liability. (g) Compliance. (h) Applicability date. [75 FR 65812, Oct. 26, 2010, as amended at 76 FR 10517, Feb. 25, 2011; 81 FR 76864, Nov. 4, 2016] § 1021.330 Exceptions to the reporting requirements of 31 U.S.C. 5331. (a) Receipt of currency by certain casinos having gross annual gaming revenue in excess of $1,000,000 In general. (b) Casinos exempt under § 1010.970(c). (c) Reporting of currency received in a non-gaming business. (d) Example. Example. A and B are casinos having gross annual gaming revenue in excess of $1,000,000. C is a casino with gross annual gaming revenue of less than $1,000,000. Casino A receives $15,000 in currency from a customer with respect to a gaming transaction which the casino reports to the Treasury Department under §§ 1010.306, 1021.311, and 1021.313. Casino B receives $15,000 in currency from a customer in payment for accommodations provided to that customer at Casino B's hotel. Casino C receives $15,000 in currency from a customer with respect to a gaming transaction. Casino A is not required to report the transaction under 31 U.S.C. 5331 or this section because the exception for certain casinos provided in paragraph (a) of this section (“the casino exception”) applies. Casino B is required to report under 31 U.S.C. 5331 and this section because the casino exception does not apply to the receipt of currency from a nongaming activity. Casino C is required to report under 31 U.S.C. 5331 and this section because the casino exception does not apply to casinos having gross annual gaming revenue of $1,000,000 or less which do not have to report to the Treasury Department under §§ 1010.306, 1021.311, and 1021.313. Subpart D—Records Required To Be Maintained By Casinos and Card Clubs § 1021.400 General. Casinos and card clubs are subject to the recordkeeping requirements set forth and cross referenced in this subpart. Casinos and card clubs should also refer to subpart D of part 1010 of this chapter for recordkeeping requirements contained in that subpart which apply to casinos and card clubs. § 1021.410 Additional records to be made and retained by casinos. (a) With respect to each deposit of funds, account opened or line of credit extended after the effective date of these regulations, a casino shall, at the time the funds are deposited, the account is opened or credit is extended, secure and maintain a record of the name, permanent address, and social security number of the person involved. Where the deposit, account or credit is in the names of two or more persons, the casino shall secure the name, permanent address, and social security number of each person having a financial interest in the deposit, account or line of credit. The name and address of such person shall be verified by the casino at the time the deposit is made, account opened, or credit extended. The verification shall be made by examination of a document of the type described in § 1010.312 of this chapter, and the specific identifying information shall be recorded in the manner described in § 1010.312 of this chapter. In the event that a casino has been unable to secure the required social security number, it shall not be deemed to be in violation of this section if it has made a reasonable effort to secure such number and it maintains a list containing the names and permanent addresses of those persons from who it has been unable to obtain social security numbers and makes the names and addresses of those persons available to the Secretary upon request. Where a person is a nonresident alien, the casino shall also record the person's passport number or a description of some other government document used to verify his identity. (b) In addition, each casino shall retain either the original or a copy or reproduction of each of the following: (1) A record of each receipt (including but not limited to funds for safekeeping or front money) of funds by the casino for the account (credit or deposit) of any person. The record shall include the name, permanent address and social security number of the person from whom the funds were received, as well as the date and amount of the funds received. If the person from whom the funds were received is a non-resident alien, the person's passport number or a description of some other government document used to verify the person's identity shall be obtained and recorded; (2) A record of each bookkeeping entry comprising a debit or credit to a customer's deposit account or credit account with the casino; (3) Each statement, ledger card or other record of each deposit account or credit account with the casino, showing each transaction (including deposits, receipts, withdrawals, disbursements or transfers) in or with respect to, a customer's deposit account or credit account with the casino; (4) A record of each extension of credit in excess of $2,500, the terms and conditions of such extension of credit, and repayments. The record shall include the customer's name, permanent address, social security number, and the date and amount of the transaction (including repayments). If the customer or person for whom the credit extended is a non-resident alien, his passport number or description of some other government document used to verify his identity shall be obtained and recorded; (5) A record of each advice, request or instruction received or given by the casino for itself or another person with respect to a transaction involving a person, account or place outside the United States (including but not limited to communications by wire, letter, or telephone). If the transfer outside the United States is on behalf of a third party, the record shall include the third party's name, permanent address, social security number, signature, and the date and amount of the transaction. If the transfer is received from outside the United States on behalf of a third party, the record shall include the third party's name, permanent address, social security number, signature, and the date and amount of the transaction. If the person for whom the transaction is being made is a non-resident alien the record shall also include the person's name, his passport number or a description of some other government document used to verify his identity; (6) Records prepared or received by the casino in the ordinary course of business which would be needed to reconstruct a person's deposit account or credit account with the casino or to trace a check deposited with the casino through the casino's records to the bank of deposit; (7) All records, documents or manuals required to be maintained by a casino under state and local laws or regulations, regulations of any governing Indian tribe or tribal government, or terms of (or any regulations issued under) any Tribal-State compacts entered into pursuant to the Indian Gaming Regulatory Act, with respect to the casino in question. (8) All records which are prepared or used by a casino to monitor a customer's gaming activity. (9)(i) A separate record containing a list of each transaction between the casino and its customers involving the following types of instruments having a face value of $3,000 or more: (A) Personal checks (excluding instruments which evidence credit granted by a casino strictly for gaming, such as markers); (B) Business checks (including casino checks); (C) Official bank checks; (D) Cashier's checks; (E) Third-party checks; (F) Promissory notes; (G) Traveler's checks; and (H) Money orders. (ii) The list will contain the time, date, and amount of the transaction; the name and permanent address of the customer; the type of instrument; the name of the drawee or issuer of the instrument; all reference numbers ( e.g., etc. (10) A copy of the compliance program described in § 1021.210(b). (11) In the case of card clubs only, records of all currency transactions by customers, including without limitation, records in the form of currency transaction logs and multiple currency transaction logs, and records of all activity at cages or similar facilities, including, without limitation, cage control logs. (c)(1) Casinos which input, store, or retain, in whole or in part, for any period of time, any record required to be maintained by § 1010.410 of this chapter or this section on computer disk, tape, or other machine-readable media shall retain the same on computer disk, tape, or machine-readable media. (2) All indexes, books, programs, record layouts, manuals, formats, instructions, file descriptions, and similar materials which would enable a person readily to access and review the records that are described in § 1010.410 of this chapter and this section and that are input, stored, or retained on computer disk, tape, or other machine-readable media shall be retained for the period of time such records are required to be retained. [75 FR 65812, Oct. 26, 2010, as amended at 81 FR 76864, Nov. 4, 2016] Subpart E—Special Information Sharing Procedures To Deter Money Laundering and Terrorist Activity for Casinos and Card Clubs § 1021.500 General. Casinos and card clubs are subject to the special information sharing procedures to deter money laundering and terrorist activity requirements set forth and cross referenced in this subpart. Casinos and card clubs should also refer to subpart E of part 1010 of this Chapter for special information sharing procedures to deter money laundering and terrorist activity contained in that subpart which apply to casinos and card clubs. § 1021.520 Special information sharing procedures to deter money laundering and terrorist activity for casinos and card clubs. (a) Refer to § 1010.520 of this chapter. (b) [Reserved] § 1021.530 [Reserved] § 1021.540 Voluntary information sharing among financial institutions. (a) Refer to § 1010.540 of this Chapter. (b) [Reserved] Subpart F—Special Standards of Diligence; Prohibitions; and Special Measures for Casinos and Card Clubs § 1021.600 General. Casinos and card clubs are subject to the special standards of diligence; prohibitions; and special measures requirements set forth and cross referenced in this subpart. Casinos and card clubs should also refer to subpart F of part 1010 of this chapter for special standards of diligence; prohibitions; and special measures contained in that subpart which apply to casinos and card clubs. § 1021.610 Due diligence programs for correspondent accounts for foreign financial institutions. (a) Refer to § 1010.610 of this chapter. (b) [Reserved] § 1021.620 Due diligence programs for private banking accounts. (a) Refer to § 1010.620 of this chapter. (b) [Reserved] § 1021.630 Prohibition on correspondent accounts for foreign shell banks; records concerning owners of foreign banks and agents for service of legal process. (a) Refer to § 1010.630 of this chapter. (b) [Reserved] § 1021.640 [Reserved] § 1021.670 Summons or subpoena of foreign bank records; termination of correspondent relationship. (a) Refer to § 1010.670 of this chapter. (b) [Reserved]