FINTRAC Fines Toronto Charity Casino for AML Regulatory Failures
Canada’s financial regulatory body has drawn attention after imposing a fine of nearly CAD 199,000 (approximately $143,000) on a Toronto-based charity casino, citing violations of federal anti-money laundering (AML) regulations.
Background: CNE Casino and Its Operation
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) recently revealed it had penalized the CNE Casino, a seasonal casino that operates during the Canadian National Exhibition held annually at Toronto’s Exhibition Place. Established under a temporary non-profit license since 1991, the casino is owned by the City of Toronto and functions to raise funds for charitable purposes. It is open each year from late July until the end of August, welcoming thousands of visitors attending the fair.
Findings of FINTRAC’s Investigation
FINTRAC’s inquiry, which began in March, focused on evaluating the casino’s adherence to the Proceeds of Crime and Terrorist Financing Act. The investigation uncovered deficiencies, including the use of inadequate risk assessment procedures and failure to perform the required bi-annual reviews assessing the effectiveness of its compliance program.
On July 14, FINTRAC confirmed it would pursue enforcement actions against the casino, slightly reducing the initial fine from CAD 200,000 to CAD 199,000.
CNE Casino’s Response to the Penalty
The casino management has publicly contested the penalty, asserting that no misconduct occurred. Their legal team has formally appealed both the allegations and the monetary fine, describing the imposed maximum penalty as disproportionate.
Gary Bostock, the director of CNE Casino, stated to the National Post that the matter pertains to technical compliance issues rather than any criminal misconduct. He characterized FINTRAC’s conclusions as unclear and difficult to interpret.
He emphasized the casino’s commitment to strict adherence to regulations and their mission to operate a lawful, safe, and efficient enterprise benefiting their charitable foundation. The casino plans to continue welcoming guests throughout the current fair season.
Current Operations and Future Proceedings
The casino will remain operational until September 1, running daily from noon until 6 a.m. It offers a diverse range of gaming options such as 3-Card Poker, Blackjack, Spanish 21, King’s Bounty, and Hold’Em Bonus Poker. Patrons can also enjoy a licensed outdoor patio with live entertainment every night.
Players interested in joining must obtain admission to the fairgrounds, register their name, and verify table availability online.
The dispute is now set to proceed through the appeals process, with both FINTRAC and the casino steadfast in their respective positions.
