Saskatchewan Gaming Authority Hit with Landmark $1.2 Million Fine by Canada's Anti-Money Laundering Watchdog

In a significant move to uphold the integrity of Canada's financial system, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has levied a substantial penalty against the Saskatchewan Indian Gaming Authority (SIGA). The nation's anti-money laundering and anti-terrorist financing watchdog announced a fine of $1,253,300 for SIGA's repeated and serious breaches of compliance obligations.

The penalty, which marks the first time a Saskatchewan casino operator has faced such a sanction from FINTRAC, underscores the critical importance of stringent financial oversight.

The federal agency identified multiple violations committed by SIGA over a four-year period, from 2018 to 2022. These include crucial failures to submit suspicious transaction reports and politically exposed person transaction reports, which are vital tools in identifying and combating illicit financial activities.

Furthermore, FINTRAC found that SIGA failed to adequately assess the risks of money laundering and terrorist financing, and neglected to maintain proper record-keeping for transactions.

These lapses are not merely administrative oversights; they represent significant gaps in the protective measures designed to prevent Canada's financial system from being exploited by criminals.

FINTRAC emphasized that compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) is non-negotiable for all entities, including casinos.

The information reported by businesses plays a pivotal role in FINTRAC's ability to generate actionable financial intelligence, which is then shared with law enforcement agencies to aid in their investigations and bring perpetrators to justice.

In response to the unprecedented fine, SIGA released a statement acknowledging the decision.

The organization asserted its commitment to fulfilling its regulatory obligations and highlighted recent investments in enhancing its anti-money laundering program. SIGA also indicated that it is carefully reviewing FINTRAC's decision and considering its available options, including a potential appeal to the Federal Court.

FINTRAC's enforcement actions serve as a powerful reminder that robust compliance is not just a regulatory burden, but a fundamental responsibility for businesses operating within Canada's financial landscape.

This case highlights the watchdog's unwavering dedication to protecting Canadians and maintaining the security of the nation's financial integrity against the threats of money laundering and terrorist financing.