Copycats warned
Nevada has buried the hatchet over its anti-money-laundering (AML) complaint against Resorts World Las Vegas by accepting its $10.5m settlement offer while also using the penalty to issue a broader warning to The Strip.
NGC voted 4-0 in favor of the $10.5m settlement
On Thursday, The Nevada Gaming Commission voted 4-0 in favor of the $10.5m settlement, proposed by the Nevada Gaming Control Board on behalf of the Genting Holdings-owned Vegas subsidiary.
Given the severity of the AML complaints, Commissioners openly questioned whether the penalty was too little or too much. They all, however, agreed to move forward and let Genting off the hook, but not without warning the financial and reputational jeopardy involved in such violations were “a clarion call for the Strip to adhere to perfectly.”
“Because if not,” stated Commissioner Brian Krolicki: “there are severe ramifications.”
Resolutions and rebukes
In Thursday’s 40-minute hearing, Commissioner Krolicki acknowledged the “breathtaking” AML complaint against Resorts World, calling the failures “truly extraordinary.”
I never want to do this again.”
“I hope all the lessons we’ve learned will carry forward for many years to come. I never want to do this again.”
Commissioner Rosa Solis-Rainey said she thought the $10.5m was “on the low side,” but supported the motion to accept the settlement. Solis-Rainey agreed on the figure “given the tremendous expenses the company is facing, has faced, and will continue to face in implementing corrective measures.”
Resorts World attorney Erica Okerberg stated in the hearing that her client appreciated “things went wrong,” and, as such: “dedicated significant time and resources, including millions of dollars, to build a better company.”
Resorts World will also need to provide the NGCB with regular reporting of AML activities and compliance measures for a minimum of five years, while regulators can, Krolicki said, reopen the case “if further issues are raised by the federal government.”
Clean slate
Genting has indeed made many costly and high profile corporate moves towards addressing what it admitted were “prior organizational missteps that have negatively impacted Resorts World Las Vegas.”
In February, the Vegas casino resort appointed ex-Nevada Governor Brian Sandoval to its executive board and later appointed Alex Dixon CEO, and Carlos Castro COO and CFO.
On Thursday, the consensus of the Commissioners was that Resorts World had gotten its AML house in order. Krolicki summed up the hatchet burying, stating:
“I do believe a lot of good will come out of this bad. We see new faces, procedures, and compliance. We now have a dream team of governance here in the front row.”
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