Jacobs 
Money laundering and terrorist financing are much more a possibility for casinos, so casinos must have strict AML policies and educate employees to spot suspicious behaviour and notify authorities as soon as possible.
Casinos and gaming operators are subject to the jurisdiction of FinCEN (the Financial Crimes Enforcement Network) which enforces AML laws. Reputational damage and losing the trust of a casino who violates AML standards can also be retaliated against them by FinCEN.
Artificial Intelligence (AI)
Artificial Intelligence (AI) is an untapped resource casinos can utilize to enhance AML operations. As AI is continually searching massive amounts of data in real time, patterns can be detected and suspicious activity can be flagged in real time for quick response from compliance departments to eliminate money laundering.
The AI can automate some of the process and cut down on the manual reviews and audits between staff. There’s always something that a casino should take into account with respect to privacy risks when working to ensure that AI technology does not violate regulatory and stakeholder requirements.
For banks looking to implement AI for AML, they must first look at their existing AML processes, note their fraud detection capabilities, and the operating expenses. Their data collection and processing should be enhanced so they can use high-quality data for AML processes; and finally, adequate resources must be present to train and update AI models effectively.
Blockchain technology
Blockchain creates a decentralized, anonymous record of all transactions, making it even more difficult for money-launderers to hide who is involved. Moreover, this technology improves the business process by eliminating the middleman and hence reduces transaction fees while maintaining data integrity and time-to-draft. Third, it reduces the time required to investigate espionage so investigators are better prepared to investigate actual threats instead of getting distracted by those.
The blockchain transactions make it very simple for casinos to confirm the source of the money, which is part of the anti-money laundering (AML) process. Casino owners can have KYC checks that can screen out risky customers, as well as blockchain and big data analytics capabilities to pick up anomalous patterns that might signal money laundering.
Illicit money is a serious problem in the world of finance and economic security and it requires a multilateral solution to be resolved. Blockchains provide one solution to make more transparent and reduce illicit flows by making them more traceable.
Non-compliance penalties
Penalties for AML violations are devastating for casinos – everything from lost customer confidence and investor relations issues, to relationships with regulatory authorities, revenue and the ability to retain new customers. Those penalties are something casinos can build and develop based on their own risk.
Casinos need to strictly follow Anti-Money Laundering (AML) laws and their employees must know how important it is. They must have regular risk assessments and reporting suspicious transactions, and revisit their AML systems regularly and make changes – this could be periodic risk assessments or audits.
Infraction penalties for AML violations can amount to thousands to millions of dollars, depending on the level of each violation and they are collected by regulators and authorities as a means of enforcement of AML policies and to prevent money laundering in gaming sectors. They’re typically a lot higher than the fines that come with social responsibility breaches.
Reputational damage
Reputation damage is a real possibility for casino that fails to implement AML, therefore casinos should adopt effective AML policies and programs in order to prevent money laundering. They should teach their employees about AML warning signs like customer identification/verification, ongoing due diligence (EDD) protocols, reporting requirements and monitoring for fraudulent activity to ensure their systems are not being accessed by authorized persons or entities.
Given its international operations, casino is on the frontline of money laundering. If they want to do so, they need to have an AML system with CDD and EDD tools to keep track of suspicious transactions, especially foreign accounts or politically exposed persons (PEPs). They must put in place transaction monitoring tools that compare with PEP data, international sanction list, negative press and so forth to detect abnormal transactions and prohibit money lending between customers.
