Casino Front money.

Someone ran into a situation that seems odd. I haven't ever heard of this request from a casino in NV.

Email:

Dear xxxxx

I spoke with xxxxxxxxxx today. He said we would be able to do the same deal as last time with a few requirements. Xxxxxxxx was contacted by our tittle 31 department, they stated we need a source of income to get you any type of deal again.

bla bla bla.

let me know when you want to come back again. Thanks.

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This is not a credit line, this is front money. I know they do CTR's and all of that, but I have never heard of a casino asking for source of income verification for front money deals.
Since this person already hit some jackpots cashed in and out chips etc etc. They have all the personal information they need including name DOB, address and SS number.

Why would they ask for source of income verification?

Suspicion of money laundering? Even if the casino meets the federal requirements for CTRs and such, they may want to be certain that the player really has a legal source for the money they are bringing in to gamble with, so that the casino doesn't get embroiled in some bad publicity later for "helping" with an illegal venture.

Yes, that is a new mandate that has come down from the government saying that the casinos need to verify the legitimacy of monies the players will be using to pay.

Quote: DRich

Yes, that is a new mandate that has come down from the government saying that the casinos need to verify the legitimacy of monies the players will be using to pay.

And how much triggers this? Are they just looking to see if your a drug dealer or into illegal activity?

What documentation do they need? how and what do they verify? What about a verbal conversation?

Obviously an AP cant say. "oh my source of income is, well, um, YOU."

What about someone who is retired or something?

It may legally be the governments business, but now the casino knows your business, and it's really NOTB.

Quote: DRich

Yes, that is a new mandate that has come down from the government saying that the casinos need to verify the legitimacy of monies the players will be using to pay.

Wow...

"She said, "Casinos are required to be aware of a customer's source of funds under current AML requirements." As she explained, as far as FinCEN is concerned, casinos are already expected to be aware of the source of their customers' gambling funds, and a casino's Know Your Customer (KYC) procedures need to specifically include this."

"Dir. Shasky Calvery closed her conference speech by warning casinos of a particular activity that has come to the attention of FinCEN and federal law enforcement as a potential "red flag" of suspicious activity, namely "chip walking." This is a process in which a customer leaves the casino with a large amount of chips or stores them on-site in a lock box for an extended period of time. Dir. Shasky Calvery said that law enforcement knows that there may be legitimate reasons for customers to do this, but it also could be a sign that the customer is trying to hide funds or structure reportable cash transactions, or use the chips as a form of currency for illegal transactions such as drug deals."

http://www.mondaq.com/unitedstates/x/323206/Money+Laundering/FinCEN+Doubles+Down+on+Casinos+with+Heightened+Regulatory+Expectations

Next they'll employ a proctologist to exam you upon arrival...

I think this is a little over the top. No, way over the top. Why not leave the freaking small time drug users alone, concentrate on the suppliers using good police work, and stop asking people to gather information that we shouldn't even have to share with the government in many cases. This just seems like a good way to figure out to seize more money without proper judicial authority (you know, like a conviction or judgement...civil forfeitures without due process are bull*&^%).

I like law and order. I support the police in most cases. I think they have a tough job. I don't support them funding their operations with excessively high speeding fines while letting people weave in and out of traffic causing more danger than speeders and not focusing on those dangerous folks. I don't support them funding their operations with money seized with no judgement or fine imposed. I don't support them acting like an attacking force instead of a police agency with militarized equipment used unless absolutely necessary.

Quote: AxelWolf

And how much triggers this? Are they just looking to see if your a drug dealer or into illegal activity?

What documentation do they need? how and what do they verify? What about a verbal conversation?

Obviously an AP cant say. "oh my source of income is, well, um, YOU."

What about someone who is retired or something?

It may legally be the governments business, but now the casino knows your business, and it's really NOTB.

I don't know the answers to these. I do believe in the future it will apply to cash players too. Imagine a scenario where you put a lot of cash in a slot machine and when you go cash your TITO they require verification of where the initial money came from before cashing it.

This is ridiculous. So say you hit 100k on a machine. You want to send that 100k to another place and now they need a paystub. Can you just say, the money came from place A and here is the w2g to prove it? Or would they just pull their front money since now they assume you have no other money. I wouldn't think they care since they are just after that 100k.

Quote: AxelWolf

This is not a credit line, this is front money. I know they do CTR's and all of that, but I have never heard of a casino asking for source of income verification for front money deals.

What does "CTR" stand for? I'm relatively new and I've never heard that reference before.

[Already answered.]

Thanks, much appreciated!