The Saskatchewan Indian Gaming Authority (SIGA) has announced its intention to appeal a $1.175 million fine issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), asserting the issue involves administrative reporting and not financial crime.
SIGA Denies Reasons for Fine
FINTRAC is the federal agency responsible for monitoring and investigating financial transactions to help detect and prevent financial crimes such as money laundering and terrorist financing. It is Canada’s financial intelligence unit (FIU) and plays a key role in the country’s efforts to detect, prevent, and deter money laundering, terrorist financing, and other threats to the security of Canada.
SIGA wrote in an official statement that it is important to note that this penalty relates solely to administrative reporting requirements and does not involve any allegations of money laundering, terrorist financing, or other financial crimes at SIGA’s properties. The Authority also reiterated that it works closely with a number of regulatory bodies in the course of its operations and places a strong emphasis on upholding and complying with regulatory standards.
SIGA does not agree with the violations cited by FINTRAC, nor with the administrative penalty imposed. As a result, SIGA will be appealing both the findings and the penalty to the Federal Court.
Why Was SIGA Fined?
According to FINTRAC, SIGA was found to have committed several administrative violations, including: failing to submit suspicious transaction reports when there were reasonable grounds to suspect the transactions were linked to money laundering or terrorist financing; failing to include the required information in suspicious transaction reports; and failing to establish and maintain up-to-date written compliance policies and procedures, which, in the case of an organization, must also be approved by a senior officer.
The penalty was issued on August 28 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its related regulations. In a statement, Sarah Paquet, Director and CEO of FINTRAC, stated that Canada’s anti-money laundering and anti-terrorist financing Regime is designed to safeguard the safety of Canadians and the security of the country’s economy. She emphasized that FINTRAC collaborates with businesses to support their understanding and compliance with obligations under the Act, while also maintaining a firm stance on ensuring that businesses fulfill their responsibilities, taking appropriate action when necessary.