To view or print PDF content, download the free Adobe Acrobat Reader.
|FOR IMMEDIATE RELEASE
January 28, 1998
FinCEN ANNOUNCES PENALTY AGAINST TRUMP TAJ MAHAL ASSOCIATES
The Department of the Treasurys Financial Crimes Enforcement Network (FinCEN) announced today that Trump Taj Mahal Associates (TTMA) has paid a civil money penalty of $477,000 for failing to file reports required by the Bank Secrecy Act (BSA). TTMA is located in Atlantic City, New Jersey, where it operates the Trump Taj Mahal Casino Resort.
The $477,000 settlement amount is for BSA violations which occurred at the casino from April 1990 through December 1991. The violations are based on failures to file Currency Transaction Report by Casino forms (CTRCs) within the time period prescribed by the BSA. TTMA was cited for these BSA violations as the result of an Internal Revenue Service (IRS) compliance examination.
Settlement of the final penalty amount was influenced by TTMAs otherwise laudable BSA compliance programs and its cooperation with Treasury Department Officials during the casinos IRS examination and final settlement of the matter with FinCEN.
During the 12 years that casinos have been required to comply with Treasurys anti-money laundering requirements, the industry has experienced dramatic growth and expansion. Today, close to $500 billion a year is wagered at casinos in the United States.
In announcing the penalty, FinCENs Director Stanley E. Morris, indicated that BSA compliance by casinos is essential to Treasurys efforts against money laundering and other types of financial crime. "It is Treasurys intention to ensure that casinos -- including the ones located in the newer gaming jurisdictions -- are complying with Treasurys preventive programs," Morris said. "Casinos are cash-intensive businesses, and many offer a wide variety of financial services, similar to banks. Without effective safeguards, they may be vulnerable to money laundering."
Director Morris also commended the IRSs Examination unit in Mays Landing, NJ for its BSA examination of TTMA and its attention to BSA compliance by the casinos located in Atlantic City, NJ.
The BSA requires casinos and other financial institutions to file reports of cash transactions in excess of $10,000 and to institute preventive compliance programs to safeguard against abuse of its financial services by casino customers. The reporting and recordkeeping information required by the BSA are extremely useful to the governments efforts in criminal, tax and regulatory investigations and proceedings.
Todays penalty is the twelfth levied by Treasury against casinos in Atlantic City, New Jersey (NJ). With this penalty, Treasury has collected almost $2.2 million in civil penalties against the 12 casinos in Atlantic City over the past five years.