Record keeping requirements for casinos
This guidance on record keeping is applicable to casinos that are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations.
In order to comply with your record keeping requirements, you are required to keep records in a manner in which they can be provided to FINTRAC within 30 days upon request. These records may also be requested through a judicial order, by law enforcement to support an investigation of money laundering or terrorist activity financing. A record (or a copy) may be kept in a machine-readable or electronic form, so long as a paper copy can easily be produced.
Employees who keep records for you are not required to keep them after the end of their employment with you. The same is true for individuals in a contractual relationship with you, after the end of that contractual relationship. This means that you have to obtain and keep the records that were kept for you by any employee or contractor before the end of that individual's employment or contract with you.
There may be situations where you are required to keep records for purposes other than your requirements under the PCMLTFA. For example, a federal or provincial regulator for your sector may require you to keep records in addition to those described in this guidance. If this is the case, you must still meet the requirements described in this guidance. For example, the retention period for your records can be longer than what is described, but it cannot be shorter.
Please note that as a casino, you have record keeping requirements in addition to those described in this guidance. These additional requirements are detailed in the following Know your client guidance documents:
- Methods to identify individuals and confirm the existence of entities
- Business relationship requirements
- Ongoing monitoring requirements
- Third party determination requirements
As a casino you must keep the following records:
- Suspicious transaction report records
- Large cash transaction records
- Casino disbursement records
- Records of remitting or transmitting funds of $1,000 or more
- Foreign currency exchange transaction ticket records
- Account records
- Signature cards
- Accounts for individuals or entities other than corporations
- Accounts for corporations
- Account operating agreements
- Deposit slips
- Debit and credit memos
- Records of credit extension of $3,000 or more
- Reasonable measures records
**Note: Exceptions to your record keeping requirements are listed in the last section of this guidance.
**Note: When recording the nature of the principal business or occupation of a client, you must be as descriptive as possible in order to be able to determine whether a transaction or activity is consistent with what would be expected for that client. For example, in the case of a person who is a manager, the occupation recorded should reflect the area of management, such as “hotel reservations manager” or “retail clothing store manager.” The same is true when recording the nature of the principal business of an entity. For example, in the case of an entity in the field of sales, the nature of the principal business should specify the type of sales, such as “pharmaceutical sales” or “retail sales”.
1. Suspicious transaction report records
If you submit a suspicious transaction report (STR) to FINTRAC, you must keep a copy of it. This includes STRs for completed and attempted transactions.
Retention: You must keep an STR record for at least five years from the date the report was submitted.
2. Large cash transaction records
You must keep a record of every large cash transaction. A large cash transaction occurs when you receive $10,000 or more in cash from a client in a single transaction. A large cash transaction also occurs when there are multiple cash transactions of less than $10,000 each that total $10,000 or more within a 24-hour period, when you know they are conducted by, or on behalf of, the same individual or entity.
You must keep a large cash transaction record for the following transactions:
- the sale of chips, tokens or plaques;
- front cash deposits;
- safekeeping deposits;
- the repayment of any form of credit, including repayment by markers or counter cheques;
- bets of currency; and
- sales of your casino's cheques.
When a client conducts a large cash transaction, your record must indicate the receipt of an amount of $10,000 or more in cash, along with the following:
- the name, date of birth and address of the individual from whom you received the cash, and the nature of their principal business or occupation;
- the amount and currency of the cash received;
- the date of the transaction;
- the purpose and details of the transaction, including:
- the type of transaction (for example, the cash was used to buy chips, etc.); and
- whether any other individuals or entities were involved in the transaction;
- how the cash was received (for example, in person, by mail, by armoured car, or any other way); and
- if an account was affected by the transaction, include:
- the account number and type of account;
- the full name of the account holder; and
- the currency in which the account's transactions are conducted.
Retention: You must keep large cash transaction records for at least five years from the date the record was created.
3. Casino disbursement records
You must keep a copy of every casino disbursement report (CDR) that you submit to FINTRAC.
A casino disbursement is any payout, whether in cash or another form, of $10,000 or more for the following transactions:
- redemption of chips, tokens or plaques;
- front cash withdrawals;
- safekeeping withdrawals;
- advances on any form of credit, including advances by markers or counter cheques;
- payments on bets, including slot jackpots;
- payments to clients of funds received for credit to that client or any other client;
- cashing of cheques or other negotiable instruments; and
- reimbursements to clients of travel and entertainment expenses.
A casino disbursement also includes two or more disbursements of less than $10,000 each that total $10,000 or more within a 24-hour period, when you know that the disbursements are received by, or on behalf of, the same individual or entity.
Retention: You must keep casino disbursement records for at least five years from the date the record was created.
4. Records of remitting or transmitting funds of $1,000 or more
When you remit or transmit $1,000 or more, whether internationally or domestically, you must record:
- if the client is an individual, their name, address, date of birth, telephone number and the nature of their principal business or their occupation;
- if the client is an entity, the name, address, date of birth and telephone number of the individual who requested the transaction on behalf of the entity and the nature of that individual’s principal business or their occupation;
- the relevant account number and/or reference number of the transaction (if applicable);
- the date of the transaction;
- the name and, if applicable, the account number of the beneficiary to whom the funds are remitted or transmitted; and
- the amount and currency of the transaction.
If you transmit funds as an EFT of any amount at the request of a client, including an EFT sent within Canada that is a SWIFT MT 103 message, you must include originator information.
If you receive an EFT of any amount, including an EFT sent within Canada that is a SWIFT MT 103 message, you must take reasonable measures to ensure it includes originator information. In this context, reasonable measures could include contacting the institution that sent the payment instructions.
Retention: You must keep these records for at least five years from the date the record was created.
5. Foreign currency exchange transaction ticket records
You must keep a transaction ticket for every foreign currency exchange transaction you conduct, regardless of the amount. Each ticket should include:
- the date, amount, and currency of the purchase or sale;
- the method, amount, and currency of the payment made or received; and
- if the transaction was $3,000 or more, the name, address and date of birth of the individual who carried out the transaction.
Retention: You must keep foreign currency exchange tickets for at least five years from the date they were created.
6. Account records
Every time you open an account for a client, you must keep the following records:
a. Signature cards
You must keep a signature card record for each account holder of that account. A signature card is a document signed by an individual authorized to give instructions on an account. It can include the handwritten signature of an individual or an electronic signature that is created or adopted by an individual. The electronic signature can be numeric, character-based, or biometric, so long as it is unique to the individual and a record can be kept.
An electronic signature can be encrypted. For example, a client’s personal identification number (PIN) can be used as an electronic signature. FINTRAC’s expectation is that it will be able to review a document during an examination, but the ‘electronic signature” does not need to unencrypted.
You can keep a single signature card record for a client with multiple accounts; you do not need to create a new signature card record every time the client opens a subsequent account.
Retention: You must keep signature card records for at least five years from the day an account is closed.
b. Accounts for individuals or entities other than corporations
When you open an account for an individual, you must keep a record of their name, address, date of birth and the nature of their principal business or occupation.
When you open an account for an entity other than a corporation, you must keep a record of its name, address and the nature of its principal business.
Retention: You must keep these records for at least five years from the date they were created.
c. Accounts for corporations
When you open an account for a corporation, you must keep a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation regarding the account.
- This could be a certificate of incumbency, the articles of incorporate or the bylaws of the corporation that set out the officers duly authorized to sign on behalf of the corporation, such as the president, treasurer, vice-president, comptroller, etc.
- If there were changes subsequent to the articles or bylaws that relate to the power to bind the corporation regarding the account and these changes were applicable at the time the account was opened, then the board resolution stating the change would be included in this type of record.
Retention: You must keep these records for at least five years from the date they were created.
d. Account operating agreements
You must keep a record of every account operating agreement that is received or created in the normal course of business.
Retention: You must keep all account operating agreements for at least five years from the day the account is closed.
e. Deposit slips
You must keep a deposit slip for every deposit to an account. A deposit slip means a record that includes:
- the date of the deposit;
- the holder of the account in whose name the deposit is made;
- the account number; and
- the amount of the deposit, and any part of the deposit that was made in cash.
Retention: You must keep all deposit slips for at least five years from the date they were created.
f. Debit and credit memos
You must keep every debit and credit memo that is received or created in relation to an account in the normal course of business.
Retention: You must keep every debit and credit memo for at least five years from the date they were created.
7. Records of credit extension of $3,000 or more
If you extend credit to a client for $3,000 or more, you must keep a record of the following:
- If the client is an entity - its name, address and the nature of its principal business;
- if the client is an individual - their name, date of birth, address and the nature of their principal business or their occupation;
- the terms and conditions of the extension of credit; and
- the date and amount of the extension of credit.
Retention: You must keep extension of credit records for at least five years from the date the record was created.
8. Reasonable measures records
The term “reasonable measures” refers to activities you must undertake in order to meet certain obligations. The PCMLTFA and associated Regulations explicitly state when you must take reasonable measures to meet an obligation.
As of June 17, 2017, the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations have been changed to require that a record be kept when reasonable measures were taken, but were unsuccessful. A reasonable measure is unsuccessful when you do not obtain a response, such as a yes or no, and you are unable to make a conclusive determination. Refer to section 67.3 of the Regulations for every activity where you are required to keep records when reasonable measures were unsuccessful.
When reasonable measures are unsuccessful, you must record the following information:
- the measures taken;
- the date on which each measure was taken; and
- the reasons why the measures were unsuccessful.
You must outline the reasonable measures that you take in your compliance policies and procedures. This can form part of your unsuccessful reasonable measures record, or you could document, on a case-by-case basis, the measure taken in each record for unsuccessful reasonable measures.
For example, if you ask a client if they are conducting a large cash transaction on behalf of a third party and they refuse to answer the question— your record should indicate that you asked, the date you asked and the fact that the client refused to answer yes or no.
Should you take a measure that is not included in your policies and procedures, you would have to include details of that measure taken in your record of unsuccessful reasonable measures.
Retention: You must keep records of your unsuccessful reasonable measures for at least five years following the date they were created.
Exceptions to record keeping requirements
If you are required to keep a record about information that is readily available in other records that you have kept, you do not have to record the same information again. This means that if you keep the required information and can produce it during a FINTRAC examination you do not need to create a new record to meet your obligations.
You do not have to keep records if you undertake the following activities for a public body or a very large corporation:
- open an account;
- extend credit of more than $3,000 to a client;
- conduct a foreign currency exchange of $3,000 or more; or
- remit or transmit $1,000 or more.
The same is true regarding a subsidiary of either of those types of entities, if the financial statements of the subsidiary are consolidated with those of the public body or very large corporation.
You are not required to keep a large cash transaction record if the cash is received from a financial entity or a public body.
- Date Modified: