Canada's FINTRAC Fines Two Gaming Corporations Over AML Compliance Failures

Canada's anti-money laundering regulator has taken enforcement action against two provincial gaming corporations, underscoring the country's intensifying focus on compliance within the gaming sector. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced penalties against the New Brunswick Lotteries and Gaming Corporation and the Nova Scotia Gaming Corporation in early September 2026, both related to violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The New Brunswick Lotteries and Gaming Corporation received an administrative monetary penalty of CAD 399,712.50 on July 24, 2026, for failing to submit suspicious transaction reports tied to potential instances of money laundering and terrorism financing. FINTRAC characterized these failures as serious offenses, noting that the corporation had neglected obligations that are fundamental to Canada's anti-money laundering and counter-terrorism financing framework. The corporation has since paid the penalty and the matter is now closed.

The Nova Scotia Gaming Corporation faced a separate fine of CAD 231,826, originally imposed on July 23, 2026. Beyond the failure to properly report attempted transactions potentially linked to money laundering or terrorism financing, this operator was found to have failed to develop and apply written compliance policies and procedures that were kept current and approved by a senior officer. FINTRAC also determined that the corporation failed to adequately assess the risk of money laundering and terrorism financing offenses within its operations.

Stephane Sirard, acting director and CEO of FINTRAC, issued statements in connection with both penalties, emphasizing that Canada's AML and CTF rules exist to protect Canadians, Canadian businesses, and the country's financial system. He stressed that the obligations outlined in the Proceeds of Crime and Terrorist Financing Act are crucial to deterring criminal activity and noted that FINTRAC will take firm action when required to ensure businesses fulfill these obligations.

These enforcement actions reflect a broader pattern of regulatory scrutiny within Canada's gaming sector, where provincial and territorial operators face mounting pressure to implement robust compliance infrastructure. The fines highlight two distinct compliance gaps: procedural failures in suspicious activity reporting and structural deficiencies in risk assessment and written policies. For gaming operators across Canada, the penalties serve as a reminder that AML compliance is not optional and that regulatory bodies are prepared to impose significant financial consequences for non-compliance.

Both corporations have complied with their respective penalties, signaling a cooperative approach to resolution. However, the cases underscore the need for Canadian gaming operators to conduct thorough compliance audits, establish documented procedures for suspicious transaction reporting, and ensure senior management oversight of anti-money laundering programs.