FINTRAC Slaps Charity Casino with Fine for AML Breaches

The financial watchdog in Canada has sparked controversy after fining a Toronto charity casino nearly CAD 199,000 ($143,000) for alleged breaches of federal anti–money laundering (AML) rules. 

Improper Risk Assessment, Missing Bi-Annual Review

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced last week that it had levied the penalty against the CNE Casino, which operates each summer during the Canadian National Exhibition, the yearly fair held at the Exhibition Place in Toronto. 

The casino, run under a temporary non-profit license since 1991, is owned by the City of Toronto and helps raise funds for charitable causes. It operates annually from late July through the end of August, attracting thousands of fairgoers.

According to FINTRAC, its investigation into the casino began in March and was aimed at assessing CNE Casino‘s compliance with the Proceeds of Crime and Terrorist Financing Act. Findings showed the casino had used “inadequate risk assessment procedures” and failed to conduct the mandatory bi-annual effectiveness review for its compliance program.

On July 14, FINTRAC officially announced that it would proceed with enforcement, but decided to cut the fine by CAD $1,000, bringing the total to CAD 199,000 from the original CAD 200,000.

The Casino Calls the Penalty Unfair 

The casino strongly disagrees with the watchdog’s decision, claiming it has not committed any wrongdoing and arguing the maximum penalty was unfairly imposed. “CNE Casino hereby appeals both findings and the resulting monetary penalties,” the legal team wrote in its official response.

When speaking to the National Post, casino director Gary Bostock explained that the case was unrelated to criminal behavior, and described the accusations as technical compliance issues. Bostock went on to call the regulator’s findings “opaque to the point of unintelligibility.”

“We are in full compliance with all regulations and are committed to operating a safe, legal, and efficient business that benefits our charitable foundation.”, he added, confirming the casino will continue to usher in players during this year’s fair. 

The venue will remain open until September 1 from 12 PM to 6 AM each day, offering a great variety of games, ranging from 3-Card Poker, Blackjack, Spanish 21, King’s Bounty, and Hold’Em Bonus Poker, along with a licensed outdoor patio where guests enjoy live nightly entertainment.

Poker aficionados interested in entering the casino must get grounds admission, add their name to a list, and check available tables online.

The case will now move through the appeals process, with both sides standing firm on their positions.