Suspicious Transaction (Gaming Law) Law and Legal Definition
A suspicious transaction is any transaction involving potential money laundering. It is any transaction which involves funds derived from illegal activities, or is intended or conducted in order to hide or disguise funds or assets derived from illegal activities. Transactions violating or evading any law or regulation, or intention to avoid any transaction reporting requirement under federal law, can be classified as a suspicious transaction.
The following is an example of state statute (Pennsylvania) defining the term.
Pursuant to [4 Pa.C.S. § 1103] "Suspicious Transaction.refers to “ A transaction between a slot machine licensee or an employee of a slot machine licensee and an individual that involves the acceptance or redemption by a person of cash or a cash equivalent involving or aggregating $ 5,000 or more which a slot machine licensee or employee of a slot machine licensee knows, suspects or has reason to believe:
(1) involves funds derived from illegal activities or is intended or conducted in order to conceal or disguise funds or assets derived from illegal activities;
(2) is part of a plan to violate or evade any law or regulation or to avoid any transaction reporting requirement under the laws or regulations of this Commonwealth or the United States, including a plan to structure a series of transactions to avoid any transaction reporting requirement under the laws or regulations of this Commonwealth or the United States; or
(3) has no apparent lawful purpose or is not the type of transaction in which a person would normally be expected to engage and the slot machine licensee or employee knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction”.
