Key Questions a Casino’s AML Committee Should Be Asking its BSA Officer
No two casinos look alike. Each differs regarding products or services offered, demographics served, and objectives to meet. As a result, the goals of each casino’s board of directors (or its top management structure) will look slightly different in how they approach long-term growth and sustainability and oversee risks facing the company. It is the board’s responsibility to set the casino’s risk appetite and strategy and to assure they are establishing the tone for a culture of risk management and compliance. As casinos grow and change, they could become more complex and their risk profiles may change. The board must stay ahead of these challenges and manage its workload appropriately. The creation of committees is a practical way for the board to mature its AML and overall Compliance Management System and formalize how it will effectively challenge management.
The company directors and BSA officer need to understand how to effectively challenge management’s implementation of the AML program. Regardless of how the Casino implements its internal control environment, the company directors should be able to challenge management’s implementation of AML. Effective challenge reduces the casino’s risk and may reduce customer friction by aligning controls to the company’s desired outcome.
Effective Challenge of the BSA Officer
As part of effective risk governance and oversight, it is the AML committee’s responsibility to 1) effectively challenge the casino’s BSA officer on overall program effectiveness and 2) assure that they are meeting the company’s long-term business objectives in line with the board-approved risk appetite. Effective committees challenge senior management by reviewing conclusions and recommendations presented by the BSA officer. Based on this review, the directors should challenge the BSA officer to ensure that risks are managed and gaps do not exist outside the risk appetite. As the casino grows and matures, the AML committee must continue to ask questions that challenge daily management decisions and the strategic decisions that will affect the company in the long term.
Below are examples of questions the AML committee should ask the BSA officer as part of credible challenge:
General Questions About the AML Program
- Are we meeting relevant BSA/AML requirements and regulations?
- Are there new regulations coming that we need to be prepared for?
- Are we prepared to implement the Anti-Money Laundering Act (AMLA)?
- Have there been updates to the risk assessment that show the company is exposed to new risks?
- Are we staffed appropriately?
- Are we at risk for penalties or fines above our risk appetite?
Questions About Sharing of Information
- Can we share SAR information or information that would reveal the existence of the SAR with our parent or affiliate?
- How do you (the BSA officer) manage this risk for us?
- Are we enrolled in 314b?
- How do we use the program?
- Are there new information-sharing regulations that we need to be prepared for?
- Are we exposed to any new risks by sharing information?
Questions About SARs
- Are we meeting relevant SAR requirements?
- Are there new regulations or guidance that we need to be prepared for?
- Have you implemented a Marijuana SAR policy in line with FinCEN 2014 G001 and the AGA’s Best Practices for AML Compliance?
- Have you found new trends that expose the company to new risks via SAR recordkeeping or reporting?
- Do any of our partners file SARs on our behalf?
- Are we exposed to any new risks via SAR recordkeeping because of this?
- Are we staffed appropriately for SAR reporting?
- Are we at risk of penalties or fines?
CTRs
- Are we meeting relevant CTR requirements and regulations?
- Do any of our partners file CTRs on our behalf?
- Are we exposed to any new risks via CTR recordkeeping because of this?
- Have you found new trends that expose the company to new risks via CTR recordkeeping or reporting?
- Are we staffed appropriately for CTR reporting?
- Are we at risk of penalties or fines?
Effective Challenge Protects Your Casino
The company’s directors are responsible for ensuring the accountability of a casino’s senior management. A foundational activity is the credible challenge of the BSA officer and implementation of the AML Program. If the AML Committee is inefficient or does not provide credible challenges to the BSA officer, there may be gaps or weaknesses that are not being remediated and managed appropriately, causing undue risk to the company.
For your AML committee to work effectively, ensure that you are providing the committee members with the right information for them to execute their responsibilities and keep the board informed. Providing information on key BSA/AML and sanctions risks and issues, resourcing, and regulatory expectations will set them up for success and ensure they have the information necessary to ask the appropriate questions and make informed risk-based decisions.
Sign up for a 30-minute meeting with A7 and we will help you tailor common questions for your directors to consider.