Is a Casino Owned by Indian Tribe Exempt?

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Question:

If a casino owned and operated by a Indian Tribe on Tribal land meets the requirements of a MSB for cashing checks over $1,000.00 for any one person in any one day, are they exempt from MSB reporting due to the fact they are a government entity?

Answer:

In a September '02 opinion FinCEN indicated that Indian Tribes may be considered as a U.S. government entity for the purpose of exemption from CTR filing. It is liklely that they would apply the same rationale to an MSB owned and operated by an Indian tribe.

However, since casinos are already regulated under BSA, I don't think any third party is going to be anxious to say they must also be regulated as an MSB. In my opinion, every casino that cashes checks in excess of $1,000 is not an MSB, but I know of nothing official that would support that opinion.

I suggest you call FinCEN and ask if a casino is an MSB due to its check cashing activity before you attempt to determine whether they are exempt from registration due to Indian ownership. Document the response you receive.

First published on BankersOnline.com 5/16/05