FINTRAC fines Eagle River Casino charity over anti-money laundering gaps
The Northern Isga Foundation, which shares in Eagle River Casino revenue, faces a $91,162.50 penalty and has appealed to the Federal Court.
Canada's financial intelligence agency has fined the Northern Isga Foundation $91,162.50 for failing to meet anti-money laundering requirements tied to its role with Eagle River Casino in Alberta. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed the administrative monetary penalty on March 2 and made it public on March 26.
FINTRAC describes the foundation, based in Glenevis, Alta., as a non-profit charitable organization set up by the Alexis Nakota Sioux Nation. It is a reporting entity under the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act because it receives a share of Eagle River Casino's revenue.
Four serious violations
The agency said it found four violations during a compliance examination, all classed as serious. First, it said the foundation's written compliance policies and procedures were missing, out of date, incomplete or not approved by a senior officer. The gaps covered identity checks, ongoing monitoring, beneficial ownership, politically exposed persons, reporting, record keeping and ministerial directives.
Second, the foundation's risk assessment did not consider geography or other relevant factors. FINTRAC said it also failed to document the controls or enhanced measures used for high-risk patrons and business relationships.
Third, FINTRAC found no written, ongoing compliance training program for staff, no documented training plan and no records showing training had been delivered.
Fourth, the foundation's own policies called for a documented review of how well its compliance program was working. FINTRAC said it was given no evidence that the review had taken place.
Appeal filed
The foundation has appealed the penalty to the Federal Court, according to FINTRAC's notice. The agency's findings have not been ruled on by the court.
Organizations in the casino sector that fall under the act must run a compliance program. That includes written policies and procedures, a documented risk assessment, an ongoing training program and a review of the program's effectiveness at least every two years.
FINTRAC uses administrative monetary penalties to encourage compliance with the act. It publishes the name of each penalized entity, the amount and the violations found.