Cantor Gaming loses $22.5 million for AML failures

FinCEN has assessed a civil money penalty of $12 million against CG Technology, L.P., doing business as Cantor Gaming, for egregious and systemic violations of the AML provisions of the Bank Secrecy Act (BSA). FinCEN’s analysis of reports filed under the BSA and information obtained from a 2010 examination by the Internal Revenue Service’s Small Business/Self-Employed Division, as well as a 2014 follow up audit by FinCEN, support this action. Additional supporting information concerning illegal gambling and money laundering surfaced stemming from a criminal investigation and indictment of 25 individuals, known as the “Jersey Boys,” conducted by the U.S Attorney’s Office for the Eastern District of New York.

FinCEN’s assessment is concurrent with the U.S. Attorney’s Offices for the Eastern District of New York and District of Nevada’s announcement of a non-prosecution agreement with Cantor Gaming. In that settlement, Cantor Gaming resolved possible criminal charges, agreeing to a forfeiture of $6 million and a criminal fine of $10.5 million. Six million dollars of the criminal fine and forfeiture will be credited to partially satisfy FinCEN’s $12 million civil money penalty.

For more information on these actions, see "Cantor Gaming pays $22.5MM for AML violations," in our BSA/AML Penalties pages.