Canada’s financial intelligence unit and anti-money laundering regulator has fined the designated licensed charity of Alberta’s Eagle River Casino and Travel Plaza more than $90,000 for alleged compliance and reporting violations.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced on Thursday that it has imposed a financial penalty of $91,162.50 on Northern Isga Foundation, the Host First Nations charity authorized by the Alexis Nakota Sioux Nation Chief and Council to conduct charitable events at the casino resort.
Eagle River is one of six Host First Nations casinos operating in Alberta on Indigenous reserve lands. The provincial gaming regulator, Alberta Gaming, Liquor & Cannabis (AGLC), licenses Host First Nation charities to conduct non-profit events within those casinos, the gaming proceeds of which go towards charitable and community activities such as education, cultural events, housing, infrastructure, and more.
FINTRAC alleges multiple administrative violations
FINTRAC stated that the Eagle River-partnered charity committed multiple violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations, as follows:
- Failure to develop and apply written compliance policies and procedures that are kept up to date and approved by a senior officer
- Failure to assess and document the risk, taking into consideration prescribed factors
- Failure to develop and maintain a written ongoing compliance training program for employees, agents or other persons
- Failure to institute and document a plan for a review of its compliance program for the purpose of testing its effectiveness, to be carried out and the results documented every two years
All of the alleged infringements are administrative violations that relate to protocols and reporting, rather than incidents representative of any alleged money laundering or other criminal activity.
“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 FINTRAC Director and Chief Executive Officer Sarah Paquet. “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.”
Canadian Gaming Business reached out to the Alexis Nakota Sioux Nation and Eagle River for this story.
Canadian gaming entities challenge FINTRAC in court
The fine is the latest in a string of penalties that FINTRAC has imposed upon gaming-related organizations in Canada.
Last summer, the watchdog fined the temporary non-profit casino at Toronto’s Canadian National Exhibition (CNE) almost $200,000 for alleged PCMLTFA violations.
It also hit the British Columbia Lottery Corporation (BCLC) with a fine of more than $1m, alleging that the crown corporation failed to report suspicious transactions, failed to develop and apply policies and procedures for high-risk clients and failed to take special measures for high-risk clients.
Then, in September, it handed out the biggest gaming-related punishment of all, fining the Saskatchewan Indian Gaming Authority (SIGA) $1.175m fine for three alleged violations, including a supposed failure to submit suspicious transaction reports despite reasonable grounds to do so.
The CNE Casino, BCLC, and SIGA all filed appeals in federal court against those punishments, claiming that the fines were unfair and unwarranted.
BCLC stated in its appeal that it was “ambushed” by FINTRAC in a 2024 examination and also alleged that FINTRAC “erred” on several counts and “misconstrued” numerous findings in its investigation and decision.
Meanwhile, SIGA disputed FINTRAC’s findings and argued that Paquet ignored and overruled some of her own agency’s findings in her reasoning for the fine.
The appeals from CNE Casino, BCLC, and SIGA all remain pending in federal court as of the time of writing.
