Financial Crimes Enforcement Network; Proposed Amendments to the Bank Secrecy Act Regulations Regarding Tribal Gaming

Proposed Rules

Federal Register

________________________________________________________________________

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Proposed Rules

DEPARTMENT OF THE TREASURY

31 CFR Part 103

RIN 1506-AA07

Financial Crimes Enforcement Network; Proposed Amendments to the

Bank Secrecy Act Regulations Regarding Tribal Gaming

AGENCY: Financial Crimes Enforcement Network, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Financial Crimes Enforcement Network (``FinCEN'') is

proposing to amend the regulations implementing the statute generally

referred to as the Bank Secrecy Act to include certain gaming

establishments operated by or on behalf of Indian tribes within the

definition of financial institution subject to those regulations. The

amendments would extend the reporting and recordkeeping requirements

and anti-money laundering safeguards of the Bank Secrecy Act to such

gaming establishments.

DATES: Written comments on all aspects of the proposed regulation are

welcome and must be received on or before November 1, 1995.

ADDRESSES: Written comments should be submitted to: Office of

Regulatory Policy and Enforcement, Financial Crimes Enforcement

Network, Department of the Treasury, 2070 Chain Bridge Road, Vienna,

Virginia 22182, Attention: NPRM--Tribal Gaming. Submission of comments.

An original and four copies of any comment must be submitted. All

comments will be available for public inspection and copying, and no

material in any such comments, including the name of any person

submitting comments, will be recognized as confidential. Accordingly,

material not intended to be disclosed to the public should not be

submitted. Inspection of comments. Comments may be inspected at the

Department of Treasury between 10:00 a.m. and 4:00 p.m., in the

Treasury Library, which is located in room 5030, 1500 Pennsylvania

Avenue NW., Washington, D.C. 20220

g the name of any person

submitting comments, will be recognized as confidential. Accordingly,

material not intended to be disclosed to the public should not be

submitted. Inspection of comments. Comments may be inspected at the

Department of Treasury between 10:00 a.m. and 4:00 p.m., in the

Treasury Library, which is located in room 5030, 1500 Pennsylvania

Avenue NW., Washington, D.C. 20220. Persons wishing to inspect the

comments submitted should request an appointment at the Treasury

Library at (202) 622-0990.

FOR FURTHER INFORMATION CONTACT: Leonard C. Senia, Compliance

Specialist, Office of Regulatory Policy and Enforcement, Financial

Crimes Enforcement Network, (703) 905-3931, or Joseph M. Myers,

Attorney-Advisor, Office of Legal Counsel, Financial Crimes Enforcement

Network, (703) 905-3557.

SUPPLEMENTARY INFORMATION:

Introduction

This document proposes (i) to amend the definition of ``casino'' in

31 CFR 103.11(i)(7)(i), (ii) to amend or add other definitions in 31

CFR 103.11, and (iii) to make a conforming change to the specification

in 31 CFR 103.36(b)(7) of certain records required to be maintained by

casinos. The proposed changes reflect the terms of section 409 of the

Money Laundering Suppression Act of 1994 (the ``Money Laundering

Suppression Act''), Title IV of the Riegle Community Development and

Regulatory Improvement Act of 1994, Pub. L. 103-325.

Background

The statute popularly known as the ``Bank Secrecy Act,'' Pub. L.

91-508, as amended, codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959,

and 31 U.S.C. 5311-5330, authorizes the Secretary of the Treasury,

inter alia, to issue regulations requiring financial institutions to

Act''), Title IV of the Riegle Community Development and

Regulatory Improvement Act of 1994, Pub. L. 103-325.

Background

The statute popularly known as the ``Bank Secrecy Act,'' Pub. L.

91-508, as amended, codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959,

and 31 U.S.C. 5311-5330, authorizes the Secretary of the Treasury,

inter alia, to issue regulations requiring financial institutions to

(i) keep records and file reports that are determined to have a high

degree of usefulness in criminal, tax, and regulatory matters, (ii)

implement counter-money laundering programs and compliance procedures,

and (iii) report potentially suspicious transactions to the federal

government. Regulations implementing Title II of the Bank Secrecy Act

(codified at 31 U.S.C. 5311-5330), appear at 31 CFR Part 103. The

authority of the Secretary to administer the Bank Secrecy Act has been

delegated to the Director of FinCEN.

The range of financial institutions to which the Bank Secrecy Act

applies includes not only banks and other depository institutions, but

also securities brokers and dealers, money transmitters, and the other

non-bank businesses that offer customers one or more financial

services. Gambling casinos were made subject to the Bank Secrecy Act as

of May 7, 1985, by regulation issued early that year, see 50 FR 5065

(February 6, 1985). Treasury has issued three sets of rules relating to

the application of the Bank Secrecy Act to casino gaming

establishments. See 50 FR 5064-5069 (February 6, 1985); 54 FR 1165-1167

(January 12, 1989); and 59 FR 61660-61662 (December 1, 1994) (modifying

and putting into final effect the rule originally published at 58 FR

13538-13550 (March 12, 1993)).

Legalized casino gaming in the United States has grown greatly

since 1985. An important component of that growth has been the opening

of casinos and other gaming establishments on Indian lands, primarily

under the procedures established by the Indian Gaming Regulatory Act

(Pub. L. 100-497, codified at 18 U.S.C

final effect the rule originally published at 58 FR

13538-13550 (March 12, 1993)).

Legalized casino gaming in the United States has grown greatly

since 1985. An important component of that growth has been the opening

of casinos and other gaming establishments on Indian lands, primarily

under the procedures established by the Indian Gaming Regulatory Act

(Pub. L. 100-497, codified at 18 U.S.C. 1166-1168, and 25 U.S.C. 2701-

2721). State gaming regulators and staff members of the National Indian

Gaming Commission (the ``NIGC''), established pursuant to the Indian

Gaming Regulatory Act, have indicated that there were approximately 120

tribal casinos, of various sizes and types, operating during 1994 in a

total of 16 states. Industry statistics for 1993 (the last year for

which statistics are readily available) indicate that wagering at

tribal casinos exceeded $27 billion in that year, a steep rate of

increase from prior years' results.

Section 409 of the Money Laundering Suppression Act codified the

application of the Bank Secrecy Act to gaming activities by adding

casinos and other gaming establishments to the list of financial

institutions specified in the Bank Secrecy Act itself.1 The

statutory specification reads:

\1\ The 1985 action initially making casinos subject to the Bank

Secrecy Act had been based on Treasury's statutory authority to

designate as financial institutions (i) businesses that engage in

activities ``similar to'' the activities of the businesses listed in

the Bank Secrecy Act, as well as (ii) other businesses ``whose cash

transactions have a high degree of usefulness in criminal, tax, or

regulatory matters.'' See 31 U.S.C. 5312(a)(2)(Y) and (Z) (as

renumbered by the Money Laundering Suppression Act).

(2) financial institution means--

(X) a casino, gambling casino, or gaming establishment with an

annual gaming revenue of more than $1,000,000 which--

k Secrecy Act, as well as (ii) other businesses ``whose cash

transactions have a high degree of usefulness in criminal, tax, or

regulatory matters.'' See 31 U.S.C. 5312(a)(2)(Y) and (Z) (as

renumbered by the Money Laundering Suppression Act).

(2) financial institution means--

(X) a casino, gambling casino, or gaming establishment with an

annual gaming revenue of more than $1,000,000 which--

(i) is licensed as a casino, gambling casino, or gaming

establishment under the laws of

any State or any political subdivision of any State; or

(ii) is an Indian gaming operation conducted under or pursuant

to the Indian Gaming Regulatory Act other than an operation which is

limited to class I gaming (as defined in section 4(6) of such Act) *

* *.

31 U.S.C. 5312(a)(2)(X). As discussed more fully below, this notice is

part of the broader process of rethinking the application of the Bank

Secrecy Act to casinos that began with the issuance of burden-reducing

amendments to the Bank Secrecy Act regulations governing casinos in

December 1994.

See 59 FR 61660-61662 (December 1, 1994).

Explanation of Provisions

A. Overview. The proposed regulations would amend the definition of

``casino'' to include explicitly casinos operated on Indian lands; make

related changes to the regulatory definitions of ``person'' and

``United States'' in 31 CFR 103.11(n) and 103.11(s), respectively; and

add definitions of the terms ``Indian Gaming Regulatory Act'',

``State'', and ``Territories and Insular Possessions'', as proposed in

31 CFR 103.11 (v), (w), and (x), respectively. A related amendment is

proposed to the record retention requirements found in 31 CFR

103.36(b)(7), to reflect the regulatory system contemplated by the

Indian Gaming Regulatory Act.

B. Definition of Casino. The definition of casino is proposed to be

amended to include explicitly casinos operated on Indian lands

ular Possessions'', as proposed in

31 CFR 103.11 (v), (w), and (x), respectively. A related amendment is

proposed to the record retention requirements found in 31 CFR

103.36(b)(7), to reflect the regulatory system contemplated by the

Indian Gaming Regulatory Act.

B. Definition of Casino. The definition of casino is proposed to be

amended to include explicitly casinos operated on Indian lands. Under

the proposed amendment, the term casino would include, inter alia, any

casino or gambling casino duly licensed or authorized to do business

under the Indian Gaming Regulatory Act or other federal, state, or

tribal law or arrangement affecting Indian lands. The term would thus

include casinos that are doing business on Indian lands on a basis

other than that specified in the Indian Gaming Regulatory Act. For

example, a casino that operates on Indian lands under a view that

compliance with the Indian Gaming Regulatory Act is unnecessary or

inconsistent with inherent tribal rights would not for that reason be

exempted from the terms of the Bank Secrecy Act, to the extent that

those terms would otherwise apply to the casino's operations.2

\2\ The authority for the application of the Bank Secrecy Act to

casinos that are neither licensed by state or local authorities nor

operated on Indian Lands pursuant to the Indian Gaming Regulatory

Act is found in 31 U.S.C. 5312(a)(2)(Y) and (Z), cited above, which

as noted were the basis for application of the Bank Secrecy Act to

casinos prior to the enactment of the Money Laundering Suppression

Act.

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her licensed by state or local authorities nor

operated on Indian Lands pursuant to the Indian Gaming Regulatory

Act is found in 31 U.S.C. 5312(a)(2)(Y) and (Z), cited above, which

as noted were the basis for application of the Bank Secrecy Act to

casinos prior to the enactment of the Money Laundering Suppression

Act.

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The general need for and appropriateness of treatment of casinos as

financial institutions for purposes of the Bank Secrecy Act have been

accepted, as indicated above, since the mid-1980s. Treasury made clear

in its first formal statements on this subject the need to prevent

casinos, which both deal in cash and cash-equivalent chips and can

offer a variety of other financial services to customers, from being

used to avoid the effect of the Bank Secrecy Act.3 There is no

reason to expect that the potential risk of such activity in casinos on

Indian lands, if those casinos were not subject to the Bank Secrecy

Act, is any less (or any greater) than for state-licensed casinos.

Prior to the enactment of the Money Laundering Suppression Act, the

issue whether the Bank Secrecy Act could be applied to gaming

operations on Indian lands was unsettled in light of the language of

section 20(d) of the Indian Gaming Regulatory Act, 25 U.S.C. 2719(d),

and the disinclination to apply general federal legislation to the

affairs of Indian tribes without clear Congressional authorization.

Section 409 of the Money Laundering Suppression Act grants direct

authority to the Secretary of the Treasury to apply the Bank Secrecy

Act to most tribal gaming operations and is backed by a strong

expression of Congressional intent, in the legislative documents

accompanying the statute, ``* * * to eliminate confusion about which

currency reporting system applies to Indian casinos.'' See H.R. Rep.

No. 652, 103d Cong., 2d Sess. 193 (1994)

Act grants direct

authority to the Secretary of the Treasury to apply the Bank Secrecy

Act to most tribal gaming operations and is backed by a strong

expression of Congressional intent, in the legislative documents

accompanying the statute, ``* * * to eliminate confusion about which

currency reporting system applies to Indian casinos.'' See H.R. Rep.

No. 652, 103d Cong., 2d Sess. 193 (1994). (The other currency reporting

system is that created, for trades or businesses not subject to the

Bank Secrecy Act, by section 6050I of the Internal Revenue Code of

1986.)

\3\ The preamble to the final rule bringing casinos within the

Bank Secrecy Act stated that

[i]n recent years Treasury has found that an increasing number

of persons are using gambling casinos for money laundering and tax

evasion purposes. In a number of instances, narcotics traffickers

have used gambling casinos as substitutes for other financial

institutions in order to avoid the reporting and recordkeeping

requirements of the Bank Secrecy Act.

Inclusion of casinos in the definition of financial

institution[s] in 31 CFR Part 103 was among the specific

recommendations in the October 1984 report of the President's

Commission on Organized Crime, `The Cash Connection: Organized

Crime, Financial Institutions, and Money Laundering'. The problem

was also the subject of hearings in 1984 before the House Judiciary

Subcommittee on Crime entitled `The Use of Casinos to Launder the

Proceeds of Drug Trafficking and Organized Crime'.

In order to prevent the use of casinos in this fashion, Treasury

is amending the regulations in 31 CFR Part 103 to require gambling

casinos to file the same types of reports [and maintain the same

types of records] that it requires from financial institutions

currently covered by the Bank Secrecy Act.

50 FR 5065, 5066, (February 6, 1985); see also 49 FR 32861,

32862 (August 17, 1984) (corresponding language in notice of

proposed rulemaking)

ion, Treasury

is amending the regulations in 31 CFR Part 103 to require gambling

casinos to file the same types of reports [and maintain the same

types of records] that it requires from financial institutions

currently covered by the Bank Secrecy Act.

50 FR 5065, 5066, (February 6, 1985); see also 49 FR 32861,

32862 (August 17, 1984) (corresponding language in notice of

proposed rulemaking).

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The retention in the proposed regulation of the term ``casino'',

rather than substitution in 31 CFR 103.11(i)(7)(i) of the broader

authorizing language of 31 U.S.C. 5312(a)(2)(X), is intentional. The

Department of the Treasury has generally sought to apply the Bank

Secrecy Act to gaming establishments that provide their customers with

a financial product--gaming--and as a corollary offer a broad array of

financial services, such as customer deposit or credit accounts,

facilities for transmitting and receiving funds transfers directly from

other institutions, and check cashing and currency exchange services,

that are similar to those offered by depository institutions and other

financial firms.

By way of contrast, the Indian Gaming Regulatory Act defines

classes of gaming establishments with reference to specific games that

may be offered by those establishments. States or the NIGC may

authorize and regulate under that Act tribal gaming activities, such as

bingo, lotteries, and pari-mutuel betting, that are not generally

offered in casino settings. These types of gaming may create different

problems for law enforcement, tax compliance, and counter-money

laundering programs than do full-scale casino operations

t

may be offered by those establishments. States or the NIGC may

authorize and regulate under that Act tribal gaming activities, such as

bingo, lotteries, and pari-mutuel betting, that are not generally

offered in casino settings. These types of gaming may create different

problems for law enforcement, tax compliance, and counter-money

laundering programs than do full-scale casino operations. Although the

Money Laundering Suppression Act grants the Department of the Treasury

authority to extend the Bank Secrecy Act to the full range of gaming

establishments in the United States, FinCEN wishes to concentrate at

this time on resolving the issues raised by extending the existing Bank

Secrecy Act structure to true casino-like establishments operating on

Indian lands.

The other changes in the definition of casino are designed simply

to list explicitly the three classes of government authorities that can

authorize or license casinos subject to the Bank Secrecy Act. The

changes are intended neither to expand nor contract the coverage of the

Bank Secrecy Act to casinos operating under State authority or under

the authority of various United States territories or possessions.

C. Treatment of Casinos Under the Bank Secrecy Act. Thus, under the

proposed regulations, casinos operating on Indian lands would become

subject not simply to the Bank Secrecy Act's currency transaction

reporting rules but to the full set of provisions (described by the

Congress as ``a comprehensive currency reporting and detailed

recordkeeping system with numerous

rritories or possessions.

C. Treatment of Casinos Under the Bank Secrecy Act. Thus, under the

proposed regulations, casinos operating on Indian lands would become

subject not simply to the Bank Secrecy Act's currency transaction

reporting rules but to the full set of provisions (described by the

Congress as ``a comprehensive currency reporting and detailed

recordkeeping system with numerous

anti-money laundering safeguards'') to which other casinos in the

United States are subject. See H.R. Rep. No. 652, supra.

The Bank Secrecy Act generally imposes several sets of requirements

on casinos. First, each casino is required to file with the Department

of the Treasury a report of each receipt or disbursement of more than

$10,000 in currency in its gaming operations; aggregation of multiple

transactions is required in a number of situations. See 31 CFR

103.22(a)(2). In addition, later this year, Treasury will issue

regulations to require financial institutions, including casinos, to

file reports of suspicious transactions. See 31 U.S.C. 5318(g)(1).

Each casino is also required by the Bank Secrecy Act to maintain

certain records relating to the casino's operation, including records

identifying account holders (see 31 CFR 103.36(a)), or showing

transactions for or through each customer's account (see, generally, 31

CFR 103.36(b)), and transactions involving persons, accounts or places

outside the United States, (see 31 CFR 103.36(b)(5)); records which are

prepared or used by a casino to monitor a customer's gaming activity or

records of purchases of more than $3,000 worth of checks or other

monetary instruments are also among the types of records that must be

maintained (see 31 CFR 103.36(b)(8) and (b)(9)). Finally, casinos must

institute training and internal control programs to assure and monitor

compliance with the Bank Secrecy Act (see 31 CFR 103.36(b)(10) and

103.54(a))

onitor a customer's gaming activity or

records of purchases of more than $3,000 worth of checks or other

monetary instruments are also among the types of records that must be

maintained (see 31 CFR 103.36(b)(8) and (b)(9)). Finally, casinos must

institute training and internal control programs to assure and monitor

compliance with the Bank Secrecy Act (see 31 CFR 103.36(b)(10) and

103.54(a)).

Gaming establishments within the scope of the proposed rule will

remain subject to the filing requirements of section 6050I of the

Internal Revenue Code, with respect to their gaming and financial

services operations, until this proposed rule becomes effective. See

section 6050I of the Internal Revenue Code, 26 U.S.C. 6050I(a) and (c);

Treas. Reg. 1.6050I-1(d)(2). Gaming establishments, whether non-tribal

or tribal, that are not included within the definition of casino in the

Bank Secrecy Act remain fully subject to the currency reporting rules

of section 6050I of the Internal Revenue Code; section 6050I of the

Code will also continue to apply to non-gaming and non-financial

services operations, for example hotel accommodations, at casinos that

are subject to the Bank Secrecy Act.

D. Request for Comments on Specific Subjects. FinCEN recognizes

that the circumstances of tribal gaming are not uniform throughout the

United States, and it is keenly aware of the need to proceed

thoughtfully in adopting the rules of the Bank Secrecy Act to the

realities of the operation of casinos on Indian lands. FinCEN

specifically seeks comment on the following questions:

1. Are there particular parts of the Bank Secrecy Act regulations

applicable to casinos generally that do not accurately reflect the way

tribal casinos operate?

2. What types of financial services, other than gaming, are offered

by tribal casinos or by other financial businesses operating at such

casinos?

3. How can compliance with the Bank Secrecy Act by tribal casinos

best be examined and enforced?

4

particular parts of the Bank Secrecy Act regulations

applicable to casinos generally that do not accurately reflect the way

tribal casinos operate?

2. What types of financial services, other than gaming, are offered

by tribal casinos or by other financial businesses operating at such

casinos?

3. How can compliance with the Bank Secrecy Act by tribal casinos

best be examined and enforced?

4. How should compliance by tribal casinos with the Bank Secrecy

Act be integrated with the regulatory regimes created by the Indian

Gaming Regulatory Act and the tribal-state compacts required by that

statute for authorization of Class III gaming?

In seeking guidance on these and other issues raised by this notice

of proposed rulemaking, FinCEN is interested in hearing from all

parties potentially affected by the proposed rules, including Indian

tribes on whose lands gaming is conducted, tribal or non-tribal

enterprises that manage casinos on such lands, and officials of state

and local governments within whose boundaries such lands are located.

FinCEN will consider holding a public hearing on the proposed rule if

comments suggest that a public hearing would be productive.

Equalization of the treatment of state-licensed and tribal casinos

is necessary as a prelude to the consideration of broader issues

affecting the application of the Bank Secrecy Act to the gaming

industry. Those issues include whether clarifications should be made in

the definition of casino as new types of gaming develop (or whether the

term ``casino'' is sufficiently elastic to encompass such developments,

\4\) whether special rules should be applicable to small casinos, and

how best to implement the provisions added to the Bank Secrecy Act

generally with respect to gaming establishments by the Annunzio-Wylie

Anti-Money Laundering Act of 1992, Title XV of the Housing and

Community Development Act of 1992, Pub. L. 102-550, and the Money

Laundering Suppression Act.

o encompass such developments,

\4\) whether special rules should be applicable to small casinos, and

how best to implement the provisions added to the Bank Secrecy Act

generally with respect to gaming establishments by the Annunzio-Wylie

Anti-Money Laundering Act of 1992, Title XV of the Housing and

Community Development Act of 1992, Pub. L. 102-550, and the Money

Laundering Suppression Act.

\4\ For example, an establishment that claimed to be a gambling

``club'' rather than a casino because it simply offered customers an

opportunity to gamble with one another, but that in practice funded

certain customers so that other customers were in effect gambling

against ``house'' money, and that offered its customers financial

services of various kinds, is arguably a casino under present law.

Thus, for example, if such a ``club'' failed to file currency

transactions reports or allowed a customer to deposit funds in a

player bank account in the name of the customer without requiring

the customer to provide identifying information, the club would

arguably be operating in violation of the Bank Secrecy Act.

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E. Other Changes in ``Meaning of Terms''. Changes are also proposed

to be made to the definitions of ``person'' and ``United States'' in 31

CFR 103.11(n) and (s), and definitions of the terms ``Indian Gaming

Regulatory Act'', ``State'', and ``Territories and Insular

Possessions'' are proposed to be added to Sec. 103.11 as new paragraphs

EN intends to issue in the near future

a notice of proposed rulemaking reordering all of the provisions of

31 CFR 103.11 as well as proposing changes in certain of those

provisions; the terms dealt with in this notice will appear in that

notice of proposed rulemaking without further changes relating to

tribal casinos.

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F. Additions to Record Maintenance Requirements. The requirement of

31 CFR 103.36(b)(7) that casinos retain all records, documents or

manuals required to be maintained under state and local laws or

regulations is proposed to be amended to recognize that tribal casinos

are required to retain records in many cases either by tribal governing

authorities or under the terms of tribal-state compacts authorizing

Class III gaming on Indian lands under the Indian Gaming Regulatory

Act. The proposed change simply conforms the record retention

requirements to reflect the fact that a casino on tribal lands will

retain certain documents because tribal rules or tribal-state compacts,

rather than state regulation, require their retention.

Proposed Effective Date

The amendments to 31 CFR Part 103 proposed in this notice of

proposed rulemaking will become effective 90 days following publication

in the Federal Register of the final rule to which this notice relates.

Special Analyses

It has been determined that this notice of proposed rulemaking (i)

is not subject to the ``budgetary impact statement'' requirement of

section 202 of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4)

and (ii) is not a significant regulatory action as defined in Executive

Order 12866. It is not anticipated that this proposed rule, if adopted

as a final rule, will have an annual effect on the economy of $100

million or more

e of proposed rulemaking (i)

is not subject to the ``budgetary impact statement'' requirement of

section 202 of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4)

and (ii) is not a significant regulatory action as defined in Executive

Order 12866. It is not anticipated that this proposed rule, if adopted

as a final rule, will have an annual effect on the economy of $100

million or more. Nor will it, if so adopted, affect adversely in a

material way the economy, a sector of the economy, productivity,

competition, jobs, the environment, public health or safety, or state,

local or tribal governments or communities. The proposed rule is

neither inconsistent with, nor does it interfere with, actions taken or

planned by other agencies. Finally, it raises no novel legal or policy

issues.

Because this rule affects Indian gaming establishments with gross

annual gaming revenues in excess of $1 million, it is hereby certified

that this proposed rule is not likely to have a significant economic

impact on a substantial number of small entities.

Drafting Information

Several individuals in FinCEN's Office of Legal Counsel and its

Office of Regulatory Policy and Enforcement participated in the

development of these regulations.

List of Subjects in 31 CFR Part 103

Authority delegations (Government agencies), Banks and banking,

Currency, Foreign banking, Investigations, Law enforcement, Reporting

and recordkeeping requirements, Taxes.

Proposed Amendments to the Regulations

Accordingly, 31 CFR Part 103 is proposed to be amended as follows:

PART 103--FINANCIAL RECORDKEEPING AND REPORTING OF CURRENCY AND

FOREIGN TRANSACTIONS

1. The authority citation for Part 103 continues to read as

follows:

Authority: Pub. L. No. 91-508, Title I, 84 Stat. 1114 (12 U.S.C.

1829b, 1951-1959); and the Currency and Foreign Transactions

Reporting Act, Pub. L. No. 91-508, Title II, 84 Stat. 1118, as

amended (31 U.S.C. 5311-5330).

nded as follows:

PART 103--FINANCIAL RECORDKEEPING AND REPORTING OF CURRENCY AND

FOREIGN TRANSACTIONS

1. The authority citation for Part 103 continues to read as

follows:

Authority: Pub. L. No. 91-508, Title I, 84 Stat. 1114 (12 U.S.C.

1829b, 1951-1959); and the Currency and Foreign Transactions

Reporting Act, Pub. L. No. 91-508, Title II, 84 Stat. 1118, as

amended (31 U.S.C. 5311-5330).

2. Section 103.11 is amended by revising paragraphs (i)(7)(i), (n),

and (s), and adding paragraphs (v), (w), and (x) to read as follows:

Sec. 103.11 Meaning of terms.

* * * * *

(i) * * *

(7) (i) Casino. A casino or gambling casino that (A) is duly

licensed or authorized to do business as such in the United States,

whether under the laws of a State or of a Territory or Insular

Possession of the United States, or under the Indian Gaming Regulatory

Act or other federal, state, or tribal law or arrangement affecting

Indian lands (including, without limitation, a casino operating on the

assumption or under the view that no such authorization is required for

casino operation on Indian lands) and that (B) has gross annual gaming

revenue in excess of $1 million. The term includes the principal

headquarters and every domestic branch or place of business of the

casino.

* * * * *

(n) Person. An individual, a corporation, a partnership, a trust or

estate, a joint stock company, an association, a syndicate, joint

venture, or other unincorporated organization or group, an Indian Tribe

(as that term is defined in the Indian Gaming Regulatory Act), and all

entities cognizable as legal personalities.

* * * * *

(s) United States. The States of the United States, the District of

Columbia, the Indian lands (as that term is defined in the Indian

Gaming Regulatory Act), and the Territories and Insular Possessions of

the United States.

* * * * *

(v) Indian Gaming Regulatory Act. The Indian Gaming Regulatory Act

of 1988, codified at 25 U.S.C. 2701 et seq.

ties cognizable as legal personalities.

* * * * *

(s) United States. The States of the United States, the District of

Columbia, the Indian lands (as that term is defined in the Indian

Gaming Regulatory Act), and the Territories and Insular Possessions of

the United States.

* * * * *

(v) Indian Gaming Regulatory Act. The Indian Gaming Regulatory Act

of 1988, codified at 25 U.S.C. 2701 et seq.

(w) State. The States of the United States and, wherever necessary

to carry out the provisions of this Part, the District of Columbia.

(x) Territories and Insular Possessions. The Commonwealth of Puerto

Rico, the United States Virgin Islands, Guam, the Commonwealth of the

Northern Mariana Islands, American Samoa, and all other territories and

possessions of the United States other than the Indian lands and the

District of Columbia.

Sec. 103.36 [Amended]

3. Section 103.36(b)(7) is amended by adding after the words

``state and local laws or regulations'' the words ``, regulations of

any governing Indian tribe or tribal government, or terms of (or any

regulations issued under) any Tribal-State compacts entered into

pursuant to the Indian Gaming Regulatory Act, with respect to the

casino in question''.

Dated: July 26, 1995.

Stanley E. Morris,

Director, Financial Crimes Enforcement Network.

[FR Doc. 95-19137 Filed 7-31-95; 3:30 pm]

BILLING CODE 4820-03-P