Caesars on the Line for up to $20 Million for Money Laundering5 years ago
Caesars Entertainment Corp. revealed that the company is currently negotiating with US authorities, trying to settle money laundering allegations at Caesars Palace. Caesars Entertainment Corp may have to pay federal authorities a fine in the range of $12m to $20m.
Representatives from Caesars and Financial Crimes Enforcement Network and other government officials met on April 29 to review the results of their investigations and to talk about possible settlement outcome. The Federal Grand Jury investigation is also ongoing and Caesars said that they have been cooperating with the authorities through the entire process.
Caesars said in its filling that Financial Crimes Enforcement Network and Federal Grand Jury have been investigating money laundering at Caesars Palace since October 2013, after Caesars received the initial call from Federal authorities. FinCen was than investigating Caesars Palace violations of the Bank Secrecy Act which is an anti-money laundering law. At a time, it was impossible to determine if Caesars would be penalized after the investigation.
However, the company now faces high penalties in ranging between $12 and $20 million and they expressed the hope that the large penalties won’t affect Caesar’s Entertainment financial results.
In the past few years FinCen has focused on anti-money laundering policies and this is not the first time that a company had received a call from federal authorities for violating an anti-money laundering law. In August 2013 Las Vegas Sands Corp. has managed to reach the deal with federal prosecutors and paid a $47.4 million settlement. Thanks to the settlement, Las Vegas Sands Corp. avoided criminal charges on money laundering at the Venetian in 2006 and 2007.
Two months ago, Financial Crimes Enforcement Network has also imposed a $10m penalty against the Trump Taj Mahal for the violations of Bank Secrecy Act. This is an anti-money laundering law that requires US financial institutions as well as casinos to detect and prevent money laundering. It also requires reporting of suspicious activities that might lead to money laundering or other criminal activities.
Caesars Entertainment Corporation, the largest US casino company, has filed for bankruptcy in January 2015. The company is currently trying to reduce the massive debt that it has incurred. The plan is to restructure more than $18m debt and in light of that, Caesars has requested to extend the amount of time it has to file its own reorganization proposal until November 15th. This latest development will certainly not help the company get there any faster.
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