Articles

Regulation Tsunami: Nevada’s Title 31 is In, Regulation 6A is Out

Article Author
Al Zayas
Publish Date
January 1, 2007
Article Tools
View all articles in the CEM Archive
Author: 
Al Zayas

When I heard the news that the Nevada Gaming Control Board was adopting Title 31’s cash reporting process and abandoning Regulation 6A, I told myself, “Watch out Las Vegas and Reno! Title 31 is like a tsunami, and my colleagues have no fair warning of what’s heading their way.” 

As a veteran Nevada gaming employee of over 20 years, I am very familiar with Regulation 6A, and after six years of Title 31 experience, I can compare the dos and don’ts for both regulations. Readers can make their own conclusions.

But, let it be clear that my opinion is based on what I know after working with both regulations, and my opinion is quite simple and to the point.

Title 31 is way more complex than regulation 6A. The following information will illustrate their differences in reportable transactions.

Multiple Transaction Log
Now, here is an important issue with Title 31: There are no dissimilar transactions. All cash-ins or cash-outs must be accumulated.

For example, if a guest cashes a check for $2,500, redeems chips for $3,000, and takes a marker for $5,000 (receiving cash), all of these transactions must be accumulated, and they now become a reportable transaction.

Under this scenario you would have to file a Currency Transaction Report Casino (CTRC) under Title 31, but would not with regulation 6A.

This is something that perhaps will be a difficult adjustment. With regulation 6A, we did not have to aggregate dissimilar transactions, and with Title 31 there are no dissimilar transactions (in other words, all ins and outs must be aggregated). This is a huge adjustment for all of the gaming properties under Regulation 6A. 

I know it took me by surprise when I had to make the adjustment to this with Title 31.

Monetary Instrument Log
The Monetary Instrument Log (MIL) will make your brain cells react like a fourth of July fireworks show.

Title 31 requires the implementation of the MIL. In summary, all check transactions of $3,000 or more, i.e. personal checks, payroll checks, credit card cash advance checks, money orders, cashiers checks, and traveler’s checks must be logged in the MIL, as well as the MTL, if cash is received or disbursed.

I told you that this was going to rattle your brains a bit. Heck, I’m still trying to adjust to this one, and it has been six years now.

So, if you cash a check for a guest in the amount of $5,000, you will have to log that transaction in the MIL, as well as the MTL; sorry, but that’s the way it is.

Regulation 6A has “prohibited transactions,” like cash for cash and issuing a casino check in exchange for cash.

Wham, the tsunami continues to hit.

In Title 31, those two transactions are prohibited, but they are reportable. Weird, huh? Of course, your property might not want to go there and perhaps adopt a company policy to prohibit these types of transactions.

Your cage staff will be somewhat impacted with the new changes, but one department that will be affected dramatically is your compliance department. It will be their responsibility to make sure to aggregate all cash-ins and cash-outs, and report them accordingly.

Under Title 31, there is only one monitoring area—the entire casino. As you already know, under 6A you had different monitoring areas. So if you have multiple cages or a satellite cage, your compliance department will have to aggregate all the cash-ins and cash-outs as one monitoring area.

No longer can we use the “No Knowledge Rule;” with Title 31 your internal audit department must find the knowledge—sorry again.

Here’s another biggie. Under Title 31, you must obtain the required information for all the CTRCs; you can no longer accept a “REFUSE” for the Social Security number. No “social” means the transaction cannot be completed.

Also, Regulation 6A requires a CTRC-Nevada at the time of the transaction and supplementals thereafter, but Title 31 does not require supplemental CTRs. When cage/slots/table games prepare a CTR, they do not total the CTR; the compliance department will complete that part after they aggregate all the transactions for the entire casino.

To my colleagues: All I have to say is that it’s not that bad, but it is definitely quite a change from Regulation 6A to Title 31. Just make sure your cashiers have plenty of logs and plenty of ink pens.

Al Zayas is currently a Director of Cage and Credit Operations at Cache Creek Casino Resort. He has more than 27 years of experience in banking, finance and casinos. He can be reached at alzayas@netzero.net.

Comments

Post new comment

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.