SIGA Challenges $1.2 Million FINTRAC Penalty
Background on the FINTRAC Fine
The Saskatchewan Indian Gaming Authority (SIGA) has announced plans to contest a substantial administrative fine of $1.175 million imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). SIGA maintains that the penalty concerns procedural reporting issues rather than allegations of actual financial criminal activity.
Understanding FINTRAC’s Role and SIGA’s Position
FINTRAC is Canada’s federal agency dedicated to monitoring financial transactions with the goal of identifying and preventing crimes such as money laundering and terrorist financing. Acting as the country’s financial intelligence unit (FIU), FINTRAC plays a vital role in protecting Canada’s financial system from illicit threats.
In its official communication, SIGA highlighted that the imposed penalty pertains strictly to administrative reporting failures and does not imply involvement in money laundering or terrorist financing at any of their facilities. The authority emphasized its ongoing cooperation with various regulatory agencies and its commitment to maintaining rigorous compliance standards.
Disputing the violations and the resultant penalty, SIGA intends to appeal the decision by taking the matter to the Federal Court, challenging both the findings and the fine imposed by FINTRAC.
Details Behind the Enforcement Action
FINTRAC identified several key administrative shortcomings in SIGA’s compliance, including a failure to submit suspicious transaction reports when warranted, omissions of essential details in submitted reports, and inadequate maintenance and approval of written compliance policies by senior officials.
The fine was levied on August 28 due to SIGA’s non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act along with its associated regulations. According to Sarah Paquet, FINTRAC’s Director and CEO, Canada’s anti-money laundering and anti-terrorist financing framework is crucial for protecting both the public and the economy. She clarified that while FINTRAC works collaboratively with businesses to promote compliance, it also enforces penalties to ensure adherence to legal obligations.
