Feds fine charity
Canada’s federal Anti Money Laundering (AML) watchdog has ruffled feathers by hitting a charity casino at the country’s largest summer fair with a CA$199k (US$143k) fine.
The Financial Transactions and Reports Analysis Centre of Canada (Fintrac) last week charged the City of Toronto-owned CNE Casino for violating federal AML and terrorism financing laws.
Toronto’s Canadian National Exhibition (CNE) runs annually from July 23 to August 31. CNE Casino has held a temporary, non-profit gambling license under its CNE parent since 1991.
CNE Casino denies all charges.
All in a tangle
The publicized penalty comes after Fintrac in March opened a probe into CNE Casino’s compliance in relation to Canada’s Proceeds of Crime and Terrorist Financing
inadequate risk assessment procedures”
The federal body subsequently accused CNE Casino of violating the proceeds of crime laws via “inadequate risk assessment procedures and failing to conduct a bi-annual effectiveness review of its compliance program.”
Despite CNE Casino’s defensive representations to Fintrac, the body on July 14 confirmed it would be pursuing its violations, but would reduce the financial penalty by $1,000 ($723).
CNE Casino’s lawyers have at once denied that the casino has committed any criminal acts while complaining of being hit with the maximum financial penalty of almost $200k.
“CNE Casino hereby appeals both findings and the resulting monetary penalties.”
Full steam ahead
While the case remains under appeal, CNE Casino Director Gary Bostock stated the casino will continue to run at the summer fair “in full operation.”
CNE Casino’s appeal put forward the notion that alleged violations were compliance-based, but that the feds’ accusations are “opaque to the point of unintelligibility.”
“There has never been any allegation of criminal activity at the CNE Casino in this process,” National Post cited Bostock as stating. “We are in full compliance with all regulations and are committed to operating a safe, legal, and efficient business that benefits our charitable foundation.”.
