Saskatchewan Indian Gaming Authority Vows to Appeal FINTRAC Penalty

The Saskatchewan Indian Gaming Authority (SIGA) has said it will appeal a CA$1.12 million (US$849,368) penalty imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

According to FINTRAC, the penalty is in response to several administrative violations at SIGA. All related to non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations.

Identified issues included failing to submit suspicious transaction reports where there were “reasonable grounds” to suspect that transactions were related to a money laundering or terrorist activity financing offense. SIGA was also flagged for policy and procedural failings within this area.

“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,” FINTRAC CEO Sarah Paquet said.

“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.”

Saskatchewan Regulator Hits Back at FINTRAC

However, SIGA has hit out at the ruling. It said it does not agree with the violations and the administrative penalties assessed.

It noted the penalty is based on administrative reporting requirements only. SIGA also said it has a compliance program in place and that it is routinely audited by FINTRAC.

“SIGA works with numerous regulatory bodies in the conduct of our business, and we place a high priority on supporting and maintaining compliance with regulatory standards,” SIGA said.

“We will be appealing both the finding of violations and the penalties assessed to the federal court.”