Yeom says CCC enforced robust AML safeguards at IPI casino

Former Commonwealth Casino Commission executive director Andrew Yeom is pushing back against a Washington Post article that alleged widespread money laundering and weak anti-money laundering oversight at Imperial Pacific International (CNMI) LLC’s Saipan casino, calling the claims speculative and unsupported by evidence.

Yeom said the casino regulator imposed extensive AML safeguards on IPI, including strict compliance with federal Title 31 and the Bank Secrecy Act, mandatory filing of suspicious activity and currency transaction reports with the Financial Crimes Enforcement Network and the Internal Revenue Service, rigorous “know your customer” requirements, and recurring third-party AML training for casino management and staff.

He added that the commission also required IPI to hire Kenneth J. Hines, a former senior IRS Criminal Investigation official, to oversee AML compliance.

“Hines is a former top law enforcement leader in IRS-CI (Criminal Investigation) who ran sting operations for the IRS and FinCEN that ultimately led to charges against Tinian Dynasty for its disregard or non-compliance with Title 31 and the Bank Secrecy Act, resulting in a whopping $75-million penalty,” Yeom said. “Who better than him to ensure that IPI follows federal law, especially in the area of money laundering, which this reporter is fictitiously claiming IPI repeatedly violated, with no actual data to show for it?”

According to Yeom, no serious money laundering violations tied to casino gaming operations were ever substantiated. While federal agencies—including the Federal Bureau of Investigation, Internal Revenue Service, and the Treasury Department’s Financial Crimes Enforcement Network—conducted investigations into IPI and its original owners, those probes did not result in indictments on major money laundering allegations.

Yeom also defended the commission’s enforcement record, noting that it issued warnings, levied fines, ordered corrective actions, and ultimately pursued license suspension and revocation. He said IPI filed for bankruptcy one day before final revocation deliberations, demonstrating that regulators had exhausted all enforcement options while observing due process.

“I even came back to the commission briefly in 2024 just to go through the revocation hearing process for the commission and the CNMI government until the final day of deliberation,” Yeom said. “This enforcement action for revocation forced IPI into filing for bankruptcy one day before our deliberations, knowing they would most likely be revoked.”

Placing the issue in the context of the CNMI’s economic downturn, Yeom voiced support for Lt. Gov. Dennis C. Mendiola’s call to streamline lawful processes that could potentially revive the stalled casino resort as part of broader tourism recovery efforts.

“Is there anything wrong with what he said?” Yeom asked. “If anyone is paying attention and actually lives here and is desperate for a revival of our tourism and our economy, isn’t this exactly the kind of words and actions we want from our leaders, whether in the executive or legislative branch?”

“Every day we wake up, we hear about more big and small businesses closing due to low tourism and a weak economy,” he added. “Much of our middle class and working class is slipping into poverty. Each month, more people leave the island in search of better lives elsewhere because there is no hope in sight for the foreseeable future.”

Yeom concluded by urging amendments to the CNMI gaming statute to avoid past mistakes, lower barriers for sustainable investors, and allow the casino industry—under strict regulation—to play a constructive role in long-term economic recovery. He also criticized off-island media for overlooking local realities.

“I am making this statement because I live here. My kids go to school here, as we call Saipan our home. Therefore, out of my love for my home and my sense of dignity for the job l proudly carried out at the commission and our government, I wanted to make sure our people understand that we did had a very legitimate casino regulation and the industry can have a significant role for a long term here if we just make it proper and fair for all parties involved and that starts with amending the gaming statutes as soon as possible,” he said.