Casinos

Casinos must fulfill specific obligations as required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations, to help combat money laundering and terrorist activity financing in Canada. For the purpose of the PCMLTFA, a casino is a government, organization, board or operator in Canada that is authorized to do business in Canada and that conducts and manages:

A registered charity authorized to carry on business in a casino for a period of two consecutive days or less, under the supervision of the casino, is not considered to be a casino.

The PCMLTFA refers to the term 'conduct and manage' to identify the entity legally responsible for the gaming activities at a casino. This is in line with the Criminal Code terminology that sets out who can oversee, carry out or license out the gaming activities (lottery schemes). The entities that conduct and manage lottery schemes, as authorized under the Criminal Code, must do so in line with the provincial legislation on gaming.   

In Canada, the provincial and territorial governments delegate the legal responsibility as to who can conduct and manage gaming activities (lottery scheme) at a casino. The entity that is delegated this responsibility by the province or territory is then responsible for meeting the obligations of the PCMLTFA and associated Regulations for that casino.

In some cases, the entity that conducts and manages a casino is not necessarily the same entity that operates the casino activities on a day-to-day basis. For example, if a provincial government has delegated the responsibility to conduct and manage the lottery scheme to a provincial lottery corporation who then delegates their reporting under the PCMLTFA to another entity, the provincial lottery corporation remains the reporting entity responsible for ensuring compliance with the PCMLTFA and associated Regulations. In other words, the legal entity responsible for the casino, as per the PCMLTFA, may choose to delegate the reporting to another entity but they remain responsible for meeting these obligations.

Casinos are responsible for the following requirements under the PCMLTFA and associated Regulations.

*Note: On June 1, 2021, regulatory amendments, which will create or change obligations for all reporting entities (REs) subject to the PCMLTFA and associated Regulations, will come into force. FINTRAC expects that REs will comply with the amended Regulations, but will exercise flexibility in assessing and enforcing compliance with certain record keeping and reporting requirements. See the Notice on forthcoming regulatory amendments and flexibility for more information.

Table 1—Summary of requirements for casinos
Category of requirement under the PCMLTFA and associated Regulations Requirements
Compliance program

Casinos must implement a compliance program. A strong compliance program will form the basis of meeting all your regulatory requirements. For more information, see Compliance program requirements and the Risk assessment guidance.

Know your client

Casinos must verify the identity of persons and entities for certain activities and transactions, and carry out other customer due diligence activities, as described below:

When to verify the identity of persons and entities
Casinos must verify the identity of persons or entities for certain transactions and activities. For more information, see When to verify the identity of persons and entities – Casinos.

Methods to verify the identity of persons and entities
Casinos must verify the identity of persons and entities using the methods prescribed by the PCMLTFA and associated Regulations. For more information, see Methods to verify the identity of persons and entities.

Business relationship requirements
Casinos enter into a business relationship with a client when they open an account for the client or the second time they are required to verify the identity of a client. For more information, see Business relationship requirements.

Ongoing monitoring requirements
Casinos have ongoing monitoring requirements when they enter into a business relationship with a client. For more information, see Ongoing monitoring requirements.

Beneficial ownership requirements
Casinos must obtain and take reasonable measures to confirm the accuracy of beneficial ownership information for entities. For more information, see Beneficial ownership requirements.

Third party determination requirements
Casinos have third party determination requirements when they are required to submit certain reports and keep certain records. For more information, see Third party determination requirements.

Politically exposed persons (PEP) and heads of international organizations (HIO) requirements
Casinos are required to take reasonable measure to make PEP and HIO determinations for certain activities or transactions. If a casino determines that a person is a PEP or a HIO then they have additional related requirements. For more information, see Politically exposed persons and heads of international organizations guidance and Politically exposed persons and heads of international organizations guidance for account-based reporting entity sectors.

Reporting

Casinos must submit the following reports to FINTRAC:

Suspicious transaction reports
For more information, see:

Terrorist property reports  
For more information, see:

Large cash transaction reports 
For more information, see:

Large virtual currency transaction reports 
For more information, see:

Electronic funds transfer reports 
For more information, see:

Casino disbursement reports 
For more information, see:

24-hour rule

Casinos have 24-hour rule requirements for casino disbursement reports, large cash transaction reports, large virtual currency transaction reports, and incoming and outgoing electronic funds transfer reports. For more information, see Transaction reporting guidance: the 24-hour rule.

Record Keeping

Casinos must keep certain records, including records related to accounts, transactions and client identification. For more information, see Record keeping requirements for casinos.

Travel rule

Casinos have travel rule requirements related to electronic funds transfers or virtual currency transfers. For more information, see Travel rule for electronic funds and virtual currency transfers.

Ministerial directives

Ministerial directive requirements apply to all reporting entity sectors. For more information, see Ministerial directives and transaction restrictions.

Penalties for non-compliance

FINTRAC has the legislative authority to issue administrative monetary penalties (AMPs) to reporting entities that are found to be non-compliant with the PCMLTFA and associated Regulations. For more information, see Penalties for non-compliance.

Glossary

The FINTRAC Guidance glossary includes terminology defined in the PCMLTFA and associated Regulations, as well as terms used throughout the guidance. For more information, see FINTRAC's Guidance Glossary.

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