CNMI continuously monitoring casino activities

The CNMI is continuously monitoring all gaming activities with the Commonwealth Casino Commission, the lead agency tasked to enforce applicable laws and regulate the new industry.

CCC, aside from following federal AML (anti-money laundering) laws, and other casino gaming regulatory agencies operate within the statute as stated in Public Law 18-56 that amended PL 18-43 that authorized the establishment of an exclusive gaming license on Saipan.

The CNMI has no local anti-money laundering law and only follows federal statutes being one of the United States’ five insular areas. The federal government will have sole jurisdiction once money-laundering transactions are detected once the said activity crosses or enters the Commonwealth.

“A lot of its has to do with inter-state transferring of funds. Once it crosses over boundaries that is usually a federally regulated activity,” said Rep. Joseph P. Deleon Guerrero (R-Saipan), the House of Representatives’ Gaming Committee chair.

Casino gaming is a new and growing industry on Saipan with Imperial Pacific International (CNMI) LLC getting the lone license to operate a facility on island.

Tinian once had the Tinian Dynasty & Casino but was fined $75 million by the U.S. Department of the Treasury’s Financial Crimes Network after failing to comply with the U.S. Bank Secrecy Act of 1970.

Tinian Dynasty remains closed to this date after stopping its operations last year with the facility becoming a white elephant on the island and now is slowly suffering from wear and tear.

Tourists who come to the CNMI, either for vacation or playing at the temporary gaming facility at the T Galleria luxury mall, can only bring in a maximum of $10,000 in cash. Casinos usually use wire money transfers especially for its VIP customers.

The gambler’s money can be wired in an account and if the client wins will again be wired back. CCC knows this type of transaction.

One example of an AML activity is drug cartels in Latin America putting up legal investments in a specific country with the money obtained through illegal means. The investment is done just to move the money out of he country of origin.

Rep. Ivan A. Blanco (R-Saipan), who is a House Gaming committee member, said CNMI officials remain vigilant in issues that would affect the Commonwealth’s economic development.

“Enforcing laws when it comes to issues of contraband entering our ports and prevent illicit activities that take place within the CNMI remain top priority of the Division of Customs and the Department of Public Safety’s high priority,” said Blanco.

He added that Customs, which is under the CNMI Department of Finance, requires inbound and outbound tourists to declare if they carry $10,000 or more in cash as a preventive measure to avoid illegal money entering the Commonwealth.

“The CNMI is seeing the extent of the problem but also has the enforcement taking place to combat the issues. Gaming in the Commonwealth is still a growing industry and as such is regulated, examined and monitored,” said Blanco.