NEVADA GAMING COMMISSION
and
STATE GAMING CONTROL BOARD

Note: The Nevada Gaming Commission, at its meeting on September 21, 2006, repealed Regulation 6A effective June 30, 2007, 11:59 P.M. The remaining elements of Nevada’s regulatory system are repealed effective June 30, 2007, 11:59 P.M. Please see Industry Letter dated November 28, 2006 regarding Regulation 6A repeal for details.

Background

In October 1970 the Bank Secrecy Act (BSA) was enacted by Congress to address money laundering, and required banks to report cash transactions to the IRS. The U.S. Treasury Department (Treasury) adopted regulations (BSA regulations) to govern the reporting requirements. The applicability of the BSA was later broadened to require other financial institutions, including casinos, to report cash transactions. On May 7, 1985 casinos were required to comply with BSA regulations. However, the BSA regulations permit the Treasury to exempt "casinos in any state whose regulatory system substantially meets the reporting and recordkeeping requirements" of the BSA regulations. On May 7, 1985, Nevada casinos were granted an exemption by the Treasury from the BSA regulation requirements based upon Nevada's regulatory system for currency transaction reporting.

Nevada's Regulatory System for Casino Currency Transactions

Generally, NGC Regulation 6A requires the reporting by casinos of cash transactions in excess of $10,000 conducted by patrons in casinos. NGC Regulation 6.090 Currency Transaction Reporting Minimum Internal Control Standards (6A MICS) require the logging by casinos of certain cash transactions conducted by patrons so that casinos may track and report "multiple" transactions that exceed $10,000 in a 24-hour period. NGC Regulation 6A prohibits certain types of cash transactions. For example, casinos are not permitted to exchange cash for cash in excess of $3,000 with a patron nor are they permitted to issue a check or wire transfer to a patron in exchange for cash in excess of $3,000. Nevada nonrestricted licensees with over $10 million in annual gross gaming revenue and over $2 million in table games statistical win are subject to the requirements of NGC Regulation 6A and 6A MICS, and are classified as "6A licensees" (NGC Regulation 6A.010(9)). Other Nevada licensees are subject to U.S. Treasury Department cash reporting requirements for trades and businesses.

Nevada's regulatory system for currency transaction reporting consists of the following:

• NGC Regulation 6A adopted January 1997 effective May 1, 1997 (prior version adopted and effective May 7, 1985). The regulation was amended March 20, 2003 to delete state suspicious transaction reporting requirements and was effective immediately upon adoption.

• NGC Regulation 6.090 Currency Transaction Reporting Minimum Internal Control Standards (6A MICS). Version 3 required compliance as of May 1, 1997.

• CPA 6A MICS Compliance Reporting Requirements (CPA 6A MICS Requirements). Version 1 required compliance as of November 1, 1997.

• Internal Audit Compliance Checklists for Currency Transaction Reporting. Version 1 required usage for any work performed for fiscal years ended April 30, 2001 and thereafter:

• Nevada Gaming Control Board Regulation 6A Newsletter #5 dated April 1, 1997 answers commonly asked questions regarding compliance with Regulation 6A and the 6A MICS.

• Currency Transaction Report by Casinos - Nevada (CTRC-N) is the Treasury form required to be completed by licensees for cash transactions exceeding $10,000 conducted by patrons. CTRC-Ns are filed directly with the Treasury.

• The following Nevada Revised Statutes are applicable to currency transactions. (Nevada Revised Statutes Pertaining to Currency Transactions)

  NRS 463.125

  Nevada Gaming Commission may adopt regulations governing the reporting of cash transactions.

  NRS 463.140

  The Nevada Gaming Control Board may investigate a criminal violation of Chapter 463 of NRS and NRS 207.195.

  NRS 463.310

  The Nevada Gaming Commission may fine licensees a minimum of $25,000 and a maximum of $250,000 for violations of a regulation adopted pursuant to NRS 463.125 that are the subject of a complaint.

  NRS 463.360

  Criminal penalties for a person (licensee or employee of a licensee) who willfully violates a regulation adopted pursuant to NRS 463.125 - a category C felony.

  NRS 207.195

  It is unlawful for a person (generally a patron and not the licensee) to conduct or attempt to conduct a financial transaction with the intent to evade a regulation adopted pursuant to NRS 463.125 - a category D felony.