The California Department of Justice (CDOJ) has announced a settlement where Artichoke Joe’s Casino has agreed to pay a $5.3m penalty.
Joe’s Casino was deemed to be misleading gambling regulators and violating the Bank Secrecy Act; a federal law which combats money laundering.
As part of the settlement with the Financial Crimes Enforcement Network (FinCEN), the casino has admitted to violating the Bank Secrecy Act.
The casino has also admitted these violations cover more than eight years, in which it failed to implement an effective anti-money laundering program and report suspicious activity.
Earlier in the case, Artichoke Joe had failed to accurately report to an investigation by FinCEN in a timely manner.
This breached the California Gambling Control act of 1998, which states casinos must make timely and accurate disclosures to gambling regulators.
Therefore, CDOJ’s Bureau of Gambling Control had to initiate a license disciplinary proceeding against the casino and its owners.
With failing to disclose information and admitting to violations, the casino has breached both the Bank Secrecy Act and the California Gambling Control act, which has led to a record sum.
The casino and its owners will now have to pay a $5.3m penalty and reimburse the Bureau for costs involved in this case.
It will also be required to comply for a 36 months and the casino’s gambling license will depend on meeting the terms of the settlement within the 36-month period.