Multiple Violations
Canada’s financial intelligence agency has issued a nearly $1.2 million penalty to Saskatchewan Indian Gaming Authority (SIGA). Citing three violations of federal anti-money laundering (AML) laws.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced on September 12 that SIGA has been fined $1.175 million following a compliance examination. The fine marks the latest in a series of enforcement actions taken by FINTRAC against Canadian gaming operators.
SIGA, a non-profit First Nations organisation, operates seven casinos in Saskatchewan, including the Bear Claw Casino & Hotel, Dakota Dunes Casino, and Gold Eagle Casino. The organisation is also responsible for running PlayNow.com, the province’s only regulated online gaming platform.
In a notice open to the public, FINTRAC outlined the three violations SIGA made of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) regulations. These were a failure to submit suspicious transaction reports when reasonable grounds existed, failure to report suspicious transactions with the required information, and having Inadequate compliance and risk assessment policies.
Serious Offences
The first violation, marked as “very serious,” involved four transactions. FINTRAC stated that in this case SIGA failed to report activity involving suspicious indicators. The indicators include transactions inconsistent with a client’s financial profile or behaviour, or transactions linked to individuals known to law enforcement or media associated with criminal activity.
The other two were considered “serious” and according to FINTRAC, SIGA submitted reports that lacked key indicators of money laundering or terrorist financing. FINTRAC also believes SIGA failed toproperly assess the risk for all their patrons.
FINTRAC CEO and Director Sarah Paquet said in a statement that Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is there to keep Canadians and the Canadian economy safe. She emphasised that the agency works with businesses to ensure understanding and compliance and only takes action when necessary.
Upcoming Appeal
In response to the penalty, SIGA stated that it would appeal both the fine and the underlying findings in the Federal Court. The organisation said the violations pertained strictly to administrative reporting. They are keen to point out that no money laundering, terrorist financing, or other financial crimes had actually occurred.
Under Saskatchewan’s gaming revenue sharing model, 50% of SIGA’s net income is distributed to the province’s 74 First Nations, 25% to Community Development Corporations for local development initiatives, and 25% to the General Revenue Fund. In the fiscal year that ended in March, SIGA posted a record gross revenue of $378 million and net income of $146 million.
The case follows a pattern of FINTRAC enforcement in the gaming sector. A temporary casino that only runs in Toronto for a few weeks during the Canadian National Exhibition is challenging a $200,000 fine. The penalty is for failures related to risk assessments and compliance program reviews.
