Thank you for your interest in this matter. If you have further questions regarding it, please let me know. Sincerely, W. DENNIS THOMAS, Assistant Secretary (Legislative Affairs). ATTACHMENT G DEPARTMENT OF THE TREASURY, Hon. THOMAS H. KEAN, Governor of New Jersey, DEAR GOVERNOR KEAN: I am writing this letter pursuant to a recent telephone conversation with Greg Stevens of your staff regarding a regulation which the Treasury Department proposes to implement in the near future which would designate casinos as financial institutions under the Bank Secrecy Act. There is increasing evidence that casinos in Nevada and Atlantic City are being used to facilitate the financial transactions of drug traffickers, organized crime figures and major tax evaders. Casinos perform many services similar to those rendered by banks. Among these are the following: they sell and cash money orders and travelers checks; cash personal and corporate checks; exchange currency; extend credit; issue cashier's checks and provide safe deposit boxes. At the present time casinos are not subject to the reporting and recordkeeping requirements of the Bank Secrecy Act. Under this Act banks, savings and loans, credit unions, currency exchanges and brokers and dealers in securities are required to report all cash transactions in excess of $10,000 to the Treasury Department and also to maintain certain records of their business dealings for specified periods of time. These requirements have been determined to have a high degree of usefulness to the Treasury Department in criminal, tax and regulatory matters. Gambling casinos have been used in a number of instances as substitutes for other financial institutions by narcotic traffickers, organized criminals and other major violators in order to avoid the reporting and recordkeeping requirements of the Bank Secrecy Act. In so doing these individuals have been able to launder amounts of currency through casinos. Some examples of this type of activity are listed as follows: Five defendants were indicted in Las Vegas in March, 1983 for using the Royal Casino and foreign bank accounts to conceal the source of $16 million in illegal drug profits. The defendants include the casino owner and its general manager. This case will go to trial in the very near future. Jimmy Chagra, a major drug trafficker from San Antonio, was a heavy gambler in Las Vegas. He moved millions of dollars through the casinos there during the period 1975-1979. In one instance he paid off a gambling debt with $915,000 in cash. Reports of his cash transactions at casinos could have been very useful to law enforcement officials. Antonio Cruz Vasquez was a major heroin distributor in the New York and New Jersey areas. Testimony during his trial in New York indicated that he lost almost $3 million in gambling during a 2-year period in Las Vegas which ended in December 1977. He had a $700,000 line of credit at a major casino. He brought large amounts of cash into the casino. Reports of this cash transactions at casinos would have been very helpful to law enforcement officers. "Joseph Richardson was a major heroin trafficker in Washington, D.C. He made cash deposits and withdrawals of over $1 million at Atlantic City casinos during a four-month period in 1982. He also used the casino to transfer funds to an account in the Cayman Islands. Richardson was laundering money in these casinos. "Maurice D. Peanuts King was a heroin trafficker from Maryland. He laundered cash through several New Jersey casinos. Following his arrest in 1982 $130,000 in cash was seized in a safe deposit box. This currency was in stacks of $5,000 in $100 bills wrapped in casino bank wrappers from Resorts International in Atlantic City. "Richard Mamarella is an insurance fraud scammer who moved approximately $350,000 in cash in and out of five Atlantic City casinos in 1982." These cases illustrate the point that narcotic traffickers and other criminals are utilizing casinos to launder cash and evade the reporting requirements of the Bank Secrecy Act. Numerous other cases can be cited. To combat this loophole the Treasury Department is considering the issuance of a regulation which would designate casinos as financial institutions under the Bank Secrecy Act. Pursuant to this regu lation we intend to impose reporting and recordkeeping requirements on casinos similar to those currently imposed on banks and other financial institutions. Under these requirements casinos would have to fill out a Currency Transaction Report for all cash transactions of more than $10,000. Recordkeeping requirements would also be imposed. I do not believe that the recordkeeping requirements would pose an undue burden because state and local laws together with regular business practices require casinos to maintain almost all of the records that we would want. It is my belief that the regulation which the Treasury Department proposes to issue is a positive law enforcement step which will assist law enforcement efforts against organized crime and major drug traffickers. I am enlisting your support in this matter and would appreciate a reply expressing your views on this proposal. If you have any questions, need any further additional background information about this matter or would like to meet in person to discuss it please feel free to call me on (202) 566-2568 or Deputy Assistant Secretary for Enforcement Robert Powis on (202) 566-5054. Sincerely, JOHN M. WALKER, Jr., Assistant Secretary (Enforcement & Operations) ATTACHMENT H STATE OF NEW JERSEY, Mr. JOHN M. WALKER, Jr., Assistant Secretary, Department of the Treasury, OFFICE OF THE GOVERNOR, Trenton, NJ, November 28, 1983. DEAR MR. WALKER: This is to inform you that my administration supports the Treasury Department's proposal to designate casinos as financial institutions under the Bank Secrecy Act. I am in full accord with efforts that assist the Treasury Department and law enforcement agencies in minimizing illegal activities, particularly on the part of organized crime, in New Jersey casinos. It would certainly appear that a designation of casinos as financial institutions under the Bank Secrecy Act would assist in reaching that goal. Once again, Mr. Walker, thank you for bringing this to our attention. Sincerely, THOMAS H. KEAN, Governor. This form should be used to report financial interest in or signature authority or other authority over one or more bank accounts. securities accounts, or other financial accounts in foreign countries as required by Department of the Treasury Regulations (31 CFR 103) You are not required to file a report if the aggregate value of the ac counts did not exceed $5.000. Check all appropriate boxes. SEE INSTRUCTIONS ON BACK FOR DEFINITIONS File this form with Dept. of the Treasury PO Box 1918 Memphis, TN 38101 5. I had signature authority or other authority over one or more foreign accounts, but I had no "financial interest" in such accounts (saa instruction J). Indicate for these accounts: 6. I had a "financial interest" in one or more foreign accounts owned by a domestic corporation, partnership or trust which is required to file TD F 90-22.1. (See instruction L). Indicate for these accounts 7. 8 9. I had a "financial interest" in one or more foreign accounts, but the total maximum value of these accounts (see instruction 1) did not exceed $10,000 at any time during the year. (If you checked this box, do not complete item 9). I had a "financial interest" in 25 or more foreign accounts. (If you checked this box, do not complete item 9.) If you had a "financial interest" in one or more but fewer than 25 foreign accounts which are required to be reported, and the total maximum value of the accounts exceeded $10,000 during the year (see instruction I), write the total number of those accounts in the box below: Complete iterns (a) through (f) below for one of the accounts and attach a separate TD F 90-22.1 for each of the others. (0) (b) Name of bank or other person with whom account is maintained (d) Address of office or branch where account is maintained Type of account. (If not certain of English name for the type of account, give the foreign language name and describe the nature of the account. Attach additional sheets if necessary.) Pursuant to the requirements of Public Law 93-579, (Privacy Act of 1974), notice is hereby given that the authority to collect information on TD F 90-22 1 in accordance with 5 U.S.C. 552(ex3) is Public Law 91-508; 31 U.S.C. 1121, 5 U.S.C. 301, 31 CFR Part 103. The principal purpose for collecting the information is to assure maintenance of reports or records where such reports or records have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings The information collected may be provided to those officers and employees of any constituent unit of the Department of the Treasury who have a need for the records in the performance of their duties. The records may be referred to any other department or agency of the Federal Government upon the request of the head of such department or agency for use in a criminal, tax, or regulatory investigation or proceeding. D.sc sure of this information is mandatory. Civil and criminal penalties, including under certain circumstances a fine of not more than $500,000 and imprisonment of not more than five years, are provided for failure to file a report, supply information, and for filing a false or fraudulent report. Disclosure of the social security number is mandatory. The authority to collect this number is 31 CFR 103. The social security number will be used as a means to icen tify the individual who files the report. INSTRUCTIONS A Who Must File a Report-Each United States person who has a financial interest in of signature authority or other authority over bank, securities, or other financial accounts in a foreign country. which exceeds $5.000 in aggregate value at any time during the calendar year, must report that relationship tach calendar year by filing TD F 90-22.1 with the Department of the Treasury on or Lefore June 30, of the succeeding year. An officer or employee of a commercial bank which is subject to the supervision o! the Comptroller of the Currency, the Board of Governors of the Federal Reserve System. or the Federal Deposit Insurance Corpora tron need not report that he has signature or Ather authority over a foreign bank, securi ties or other financial account maintained by the bank unless he has a personal finan Cal interest in the account In addition, an officer or employee of a domestic corporation whose securities are listed upon national securities exchanges or which has assets exceeding $1 million and 500 or more shareholders of record need not bis such a report concerning his signature authority over a foreign financial account of the corporation, if he has no personal finan cial interest in the account and has been ad used in writing by the chie! financial officer of the corporation that the corporation has led a current report which includes that account. 8 United States Person-The term United States person" means (1) a citizen or resident of the United States (2) a domestic partnership. (3) a domestic corpo ration, (4) a domestic estate or trust. C. When and where to File-This report shall be filed on or before June 30 each cal endar year with the Department of the Treasury Post Office Box 1918. Memphis. TN, 38101, or it may be hand carried to any local office of the Internal Revenue Service for forwarding to the Department of the Treasury. Memphis, TN D. Account in a Foreign Country-A foreign country" includes all geographical areas located outside the United States. Guam, Puerto Rico, and the Virgin Islands Report any account maintained with a bank (except a military banking facility as defined in instruction E) or broker or dealer in securities that is located in a foreign. country, even if it is a part of a United States bank or other institution. Do not report any account maintained with a branch. agency or other office of a foreign bank of other in stilution that is located in the United States. Guam, Puerto Rico, and the Virgin Islands E. Military Banking Facility-Do not con sider as an account in a foreign country. an account in an institution known as a "United Stales military banking facility" (or "United States military finance facility) operated by a United States financial institution designated by the United States Government to serve US Government installations abroad, even if the United States military banking facility is located in a foreign country F. Bank, Financial Account-The term bank account" means a savings, demand. checking, deposit, loan or any other account maintained with a financial institution or other person engaged in the business of Banking. It includes certificates of deposit. The term securities account" means an account maintained with a financial institu tion or other person who buys, sells, holds. Or frades stock or other securities for the benefit of another The term "other financial account" means any other account maintained with a finan cial institution or other person who accepts deposits, exchanges or transmits funds, or acts as a broker or dealer for future trans actions in any commodity on (or subject to the rules of) a commodity exchange or association. G. Financial Interest-A financial interest in a bank, securities. or other financial account in a foreign country means an interest described in either of the following two paragraphs. (1) A United States person has a financial interest in each account for which such person is the owner of records or has legal title. whether the account is maintained for his or her own benefit or for the benefit of others including non-United States persons. If an account is maintained in the name of two persons jointly, or if several persons each Own a partial interest in an account, each of those United States persons has a financial interest in that account. (2) A United States person has a financial interest in each bank, securities, or other financial account in a foreign country for which the owner of record or holder of legal title is. (a) a person acting as an agent. nominee, attorney, or in some other capacity on behalf of the U.S. person; (b) a corporation in which the United States person owns directly or indirectly more than 50 percent of the total value of shares of stock; (c) a part nership in which the United States person owns an interest in more than 50 percent of the profits (distributive share of income), or (d) a trust in which the United States person either has a present beneficial interest in more than 5 percent of the assets or from which such person receives more than 50 percent of the current income. H. Signature or Other Authority Over an Account Signature Authority-A person has signature authority over an account if such person can control the disposition of money or other property in it by delivery of a document containing his or here signature (or his or her signature and that of one or more other persons) to the bank or other person with whom the account is maintained. Other authority exists in a person who can exercise comparable power over an account by direct communication to the bank or other person with whom the account is maintained, either orally or by some other means 1. Account Valuation-For items 7. 9. and Instruction A, the maximum value of an account is the largest amount of currency and non-monetary assets that appear on any quarterly or more frequent account statement issued for the applicable year. If periodic account statements are not so issued, the maximum account asset value is the largest amount of currency and nonmonetary assets in the account at any time during the year. Convert foreign currency by using the official exchange rate at the end of the year. In valuing currency of a country that uses multiple exchange rates, use the rate which would apply if the currency in the account were converted into United States dollars at the close of the calendar year. The value of stock, other securities or other non-monetary assets in an account reported on TD F 90-22.1 is the fair market value at the end of the calendar year, or it withdrawn from the account, at the time of the withdrawal. For purposes of items 7, 9, and Instruction A, if you had a financial interest in more than one account, each account is to be US GOVERNMENT PRINTING OFFICE 1983 421-600/3054 valued separately in accordance with the foregoing two paragraphs. If you had a financial interest in one or more but fewer than 25 accounts, and you are unable to determine whether the maximum value of these accounts exceeded $10.000 at any time during the year. check item 9 (do not check item 7) and complete Item 9 for each of these accounts J. United States Persons with Authority Over but No Interest in an Account-Except as provided in Instruction A and the following paragraph, you must state the name, address, and identifying number of each owner of an account over which you had authority. but if you check item 5 for more than one account of the same owner, you need identify the owner only once If you check item 5 for one or more accounts in which no United States person had a financial interest, you may state on the first line of this item, in lieu of supplying information about the owner. "No US person had any financial interest in the foreign accounts. This statement must be based upon the actual belief of the person filing this form after he Or she has taken reasonable measures to endure its correct ness. If you check item 5 for accounts owned by a domestic corporation and its domestic and/or foreign subsidiaries. you may treat them as one owner and write in the space provided, the name of the parent corpora tion, followed by "and related entities." and the identifying number and address of the parent corporation. K. Consolidated Reporting-A corporation which owns directly or indirectly more than 50 percent interest in one or more other entitles will be permitted to file a consolidated report on TD F 90-22.1. on behalf of itself and such other entities provided that a listing of them is made part of the con solidated report. Such reports should be signed by an authorized official of the parent corporation. If the group of entities covered by a consolidated report has a financial interest in 25 or more foreign financial accounts. the reporting corporation need only note that fact on the form, it will, however, be required to provide detailed information concerning each account when so requested by the Secretary or his delegate. L. Avoiding Duplicate Reporting-If you had financial interest (as defined in instruction G(2)(b). (c) or (d) in one or more accounts which are owned by a dornestic corporation, partnership or trust which is required to file TD F 90-22.1 with respect to these accounts in lieu of completing item 9 for each account you may check item 6 and provide the required information. M. Providing Additional Information-Any person who does not complete item 9. shall when requested by the Department of the Treasury provide the information called for in item 9. N. Signature (Item 10)-This report must be signed by the person named in Item 1. If the report is being filed on behalf of a partnership, corporation, or fiduciary, it must be signed by an authorized individual. O. Penalties-For criminal penalties for failure to file a report, supply information, and for filing a false or fraudulent report see 31 U.S.C. 5322(a). 31 U.S.C. 5322(b), and 18 U.S.C. 1001. PART II-FOR PERSON SHIPPING, MAILING OR RECEIVING CURRENCY OR MONETARY INSTRUMENTS J PART CURRENCY AND MONETARY INSTRUMENT INFORMATION (SEE INSTRUCTIONS ON REVERSE) (To be completed by everyone) 25. TYPE AND AMOUNT OF CURRENCY/MONETARY INSTRUMENTS Value in U.S. Dollars 26. IF OTHER THAN U.S. CUR- PART IV GENERAL-TO BE COMPLETED BY ALL TRAVELERS, SHIPPERS AND RECIPIENTS 27. WERE YOU ACTING AS AN AGENT, ATTORNEY OR IN CAPACITY FOR ANYONE IN THIS CURRENCY OR MONETARY INSTRUMENT ACTIVITY? {{ "Yes" complete A, B and C) B. Country ON☐ C. Business activity occupation or profession ARE ACTING Under penalties of perjury, I declare that I have examined this report, and to the best of my knowledge and belief it is true, correct and completa. 28. NAME AND TITLE 29. SIGNATURE 30. DATE GPO 959-097 (Replaces IRS Form 4790 which is obsolete) Customs Form 4790 (12-29-76) |