Nevada Given OK to Monitor Casinos’ Cash

Federal officials and the Nevada gaming industry have signed an agreement to allow the state, rather than the Treasury Department, to police large cash transactions at casinos, Sen. Paul Laxalt (R-Nev.) announced Friday.

The signing of the agreement is a major step in an 18-month fight by Nevada casinos to remain exempt from new Treasury Department regulations aimed at halting the laundering of money from narcotics traffic.

The accord must now be approved by Treasury Secretary Donald Regan and Internal Revenue Service Commissioner Roscoe Egger Jr.

Laxalt called the agreement “a state system that will accomplish the federal objective.”

Negotiators declined to discuss details of the plan until it is reviewed by Regan and Egger.

Sought an Exemption

New federal reporting requirements governing cash transactions are set to go into effect by the end of January. Nevada had sought an exemption that would allow the state to control reporting requirements of casinos.

The Treasury Department sought the law, which would define casinos as “financial institutions” under the Bank Secrecy Act. The law is designed to monitor cash transactions of $10,000 or more in an effort to halt the laundering of drug money at casinos.

Casino owners were fearful that the new federal law would inhibit their high-stakes gamblers and expressed concern that the law would be used by the IRS to collect other financial information on those vital customers.

Laxalt met personally with Regan and Egger in December after talks bogged down. Federal, state and gaming officials then began a renewed effort to reach an agreement.