Canada’s financial intelligence unit, FINTRAC, has imposed an administrative penalty of CA$1.175 million on the Saskatchewan Indian Gaming Authority.
The penalty relates to alleged non-compliance with Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations.
According to FINTRAC, the Saskatchewan Indian Gaming Authority (SIGA) failed to submit suspicious transaction reports where there were reasonable grounds to do so, and also failed to develop and apply written compliance policies and procedures that were kept up to date.
“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy,” said Sarah Paquet, director and CEO of the Financial Transactions and Reports Analysis Centre of Canada.
“FINTRAC works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
SIGA has denied the allegations and vowed to challenge the monetary penalty in court, noting that its compliance program is routinely audited by FINTRAC.
SIGA said the penalty is based on administrative reporting requirements only and stressed that there is no money laundering, terrorist financing, or other financial crimes at its seven casinos in the province of Saskatchewan.
“SIGA does not agree with the violations found by FINTRAC, nor does it agree with the administrative penalties assessed,” the authority added. “SIGA will be appealing both the finding of violations and the penalties assessed to the Federal Court.”