Recently one of our readers was playing craps at a local casino and lost $14,000, the casino requested some information from him including his name and social security number and subsequently filled out a currency transaction report. Many of you may have had similar experiences and as a result, may be wondering exactly what are the rules for reporting currency? As it turns out there are two sets of rules. One for casinos and one for all other businesses. The later being the more well known requirement of reporting cash transactions of $10,000 or over, enacted as an anti money laundering measure, some years ago. The government eventually developed a set of requirements specifically for casinos and instituted another form, IRS Form 8362, which is entitled "Currency Transaction Report for Casinos". These requirements are presented in this article so that you will know when it will happen to you.

Casinos must file a Form 8362 for each transaction in currency, involving either cash in or cash out, of more than $10,000. Casinos may report both cash in and cash out transactions by or on behalf of the same customer on a single Form 8362. Multiple transactions must be treated as a single transaction if the casino has knowledge that:

• they are by or on behalf of any person, and
• result in either cash into or cash out of the casino totaling more than $10,000 during any one gaming day. A gaming day is the casino's normal business day. If the casino offers 24-hour gaming, its gaming day is the 24-hour period by which it keeps its books and records for business, accounting, and tax purposes.

In addition, this form may be filed for any suspicious transaction, even if it does not exceed $10,000, or to amend a previously filed Form 8362. Casinos do not have to file this form for transactions with domestic banks.

All individuals conducting certain large currency transactions for themselves or for another person must be positively identified by obtaining the name, address, social security or other identifying number, and date of birth. In addition, the regulations require that the individual's name and permanent address be verified and recorded. Transactions that require the casino to obtain identifying information are:

• Purchases (buy-ins) of chips, tokens, or plaques of $3,000 or more, by one or more transactions in currency during a gaming day.
• Cash bets or wagers of $3,000 or more, by one or more transactions in currency during a gaming day.
• Transactions involving personal checks, business (including casino) checks, official bank checks, cashier checks, third party checks, promissory notes, travelers checks and money orders having a face value of $3,000 or more.
• Purchases or redemptions of slot machine tokens of $3,000 or more, by one or more transactions in currency during a gaming day.
• All other customer transactions of $3,000 or more in currency.
• The opening of any type of deposit account, credit account, credit line, or other account by or on behalf of a customer.
  

Statements such as "known customer" or "signature card on file" do not meet the requirements for verifying identities. For a U.S. citizen, a driver's permit or any other written identification document acceptable to a domestic bank in normal check cashing operations for nonaccountholders is acceptable for verification. For a nonresident alien, his or her passport, alien ID card, or other official document showing nationality or residence must be examined for verification.

Incidentally, casinos are required to file this form by the 15th day after the date of the transaction and keep a copy of each Form 8362 for 5 years from the date filed. and are subject to some heavy civil and criminal penalties (up to $500,000 and 10 years imprisonment) for failure to file a report or to supply information or for filing a false or fraudulent report.

The government defines terms used in these instructions as follows:

• Casino.-Any organization licensed to do business as a casino or gambling casino in the United States and having gross annual gaming revenues in excess of $1 million. It includes the principal headquarters and every domestic branch or other place of business of the casino.
• Currency.-The coin and currency of the United States or any other country that circulates in and is customarily used and accepted as money in the country it is issued. It includes United States silver certificates, United States notes, Federal Reserve notes and official foreign bank notes, but does not include bank checks and notes or other negotiable instruments not customarily accepted as money.
• Customer.-Any person involved in a transaction in currency, whether or not that person participates in the casino's gaming activities.
• Person.-An individual, corporation, partnership, trust or estate, joint stock company, association, syndicate, joint venture, or other unincorporated organization or group, and all entities treated as legal personalities.
• Transaction in Currency.-A transaction involving the physical transfer of currency from one person to another. A transaction in currency does not include a transfer of funds by means of bank check, bank draft, wire transfer, or other written order that does not include the physical transfer of currency.
• Negotiable Instruments.-For purposes of this form, negotiable instruments are all checks (including personal, business, bank, cashier's, and third-party checks), money orders, traveler's checks, certificates of deposit, and promissory notes.

In closing, we hope that armed with this knowledge, you will be understanding with casino personnel when requested to provide identification as the result of a large cash transaction, they are just doing what is required by the government. PLEASE NOTE: In Nevada State Form 6A is used in place of Form 8362. Federal reporting requirements in the state of Nevada are met through Nevada State law which is actually more stringent.

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