Fallsview, Ontario casino appeals $70,000 money laundering charges
Ontario's Fallsview Casino Resort says it disagrees "out of respect" with the Alcohol and Gaming Commission of Ontario's (AGCO) decision to fine the gaming company for alleged breaches of money laundering regulations.
AGCO this week fined Fallsview Casino C$70,000 ($52,039). Previously, the provincial gaming regulator concluded that the casino failed to comply with applicable regulatory conditions to minimize the risk of illegal activity in the gaming sector, in particular money laundering.
Regulators cited an incident in April 2023 when a guest entered the Salon Privé casino with $80,000 in cash in a reusable shopping bag. The cash was reportedly in $100 Canadian dollars.
Surveillance video shows the man exchanging money for chips at the gaming table and then leaving without playing. Fallsview employees identified the individual as "high risk" but reportedly failed to notify the AGCO and local police of the transaction, as required by Ontario's anti-money laundering regulations.
The casino operator also failed to take meaningful steps to identify and confirm the source of its customers’ funds, as required by the anti-money laundering rules set out in the Registrar’s Gambling Standards. ” explained AGCO.
"Preventing illegal activity on gambling sites in Ontario is a top priority for the AGCO. Casino operators play an important role and must take steps to effectively detect and prevent criminal activity on their gambling sites," the release continued.
Fallsview denies the allegations
Fallsview Casino Resort sent an email containing a statement denying AGCO’s allegations. Fallsview is owned by Ontario Lottery and Gaming (OLG). The business is leased to Mohegan, the gaming operation of the Mohegan Tribe of Connecticut.
As a responsible gaming operator, Fallsview Casino Resort is committed to identifying and preventing illegal activity. "Our company has a culture and history of integrity and transparency, as well as a long-standing commitment to compliance in Ontario," Fallsview's statement said.
Casino said it will appeal the AGCO's penalty and looks forward to "presenting our case."
Mohegan acquired the rights to operate the Fallsview and Niagara casinos in 2019 after OLGC decided to sell management. Terms of the contract were not disclosed. But Mohegan Sun has pledged to invest "hundreds of millions" in the properties.
Provincial Raid
After Ontario casinos reopened in July 2021, the government of Canada's most populous province announced new initiatives to better combat money laundering schemes.AGCO creates a task force to monitor large cash transactions at provincial casinos.
AGCO says it expects a surge in illegal activity after casinos and other venues where criminals try to launder dirty money are closed due to the COVID-19 pandemic.
A July report from the Canadian Center for Financial Transactions and Reports Analysis 2020 said: “The COVID-19 pandemic and related closures and physical distancing measures have disrupted some money laundering methods, particularly those that rely on funneling illicit cash into cash-intensive businesses. ." FINTRAC) reads.
The AGCO Task Force has been working with the Ontario Provincial Police and OLG to monitor cash transactions at casinos in the province.
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Source: www.casino.org
