REGINA – Saskatchewan Indian Gaming Authority faces a steep fine imposed by the Financial Transactions and Reports Analysis Centre of Canada for a number of administrative violations.
FINTRAC announced on Friday it has imposed an administrative monetary penalty on SIGA of $1,175,000 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations.
The penalty was imposed on Aug. 28. The violations, according to FINTRAC’s news release, are failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to a money laundering or terrorist activity financing offence; failure to report suspicious transactions with the prescribed information; and failure to develop and apply written compliance policies and procedures that are kept up to date, and, in the case of an entity, are approved by a senior officer.
“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 Sarah Paquet, Director and Chief Executive Officer of FINTRAC, in a statement. “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.”
SIGA is the operator of seven casinos across Saskatchewan.
In a statement SIGA says it does not agree with the violations found by FINTRAC, nor with the administrative penalties assessed. SIGA says it "will be appealing both the finding of violations and the penalties assessed to the Federal Court."
SIGA also notes that the penalty is based on administrative reporting requirements only. “There is no money laundering, terrorist financing, or other financial crimes at SIGA’s properties.”
SIGA states it has a compliance program which is routinely audited by FINTRAC. They also state they work with “numerous regulatory bodies in the conduct of our business, and we place a high priority on supporting and maintaining compliance with regulatory standards.”
