Crackdown on Dirty Money in Canadian Casinos

Casinos in Canada are being warned to be on the look out for customers paying with bank drafts – the latest way for criminals to hide dirty money.

Following intense media and government scrutiny the Financial Transactions and Reports Analysis Centre of Canada, know as Fintrac, issued a red alert for the industry that cash is no longer being used for illicit casino transactions.

Fintrac’s recent analysis of suspicious casino transactions highlighted that criminals are choosing the relative anonymity and liquidity of bank drafts.

Professional money launderers are always trying to change their methods in an effort to evade detection according to Fintrac Nada Semaan. He explained that although it is difficult the agency tries to stay one step ahead of the launderers.

The Centre assists in the detection, prevention and deterrence of money laundering and the financing of terrorist activities and is independent from the police, law enforcement agencies and other organisations. FINTRAC’s remit is to combat money laundering and terrorist financing.

Fintrac tries to zero in on cash linked to terrorism and money laundering by sifting through millions of pieces of information annually from banks, insurance companies, securities dealers, money service businesses, real estate brokers, casinos and others.

Overall, the centre divulged 2,276 pieces of intelligence to police and security agencies such as the RCMP and Canadian Security Intelligence Service last year.

FINTRAC is publishing the Alert as part of Project Athena, a Royal Canadian Mounted Police-led public-private partnership aimed at improving understanding of the money laundering threat, strengthening financial systems and controls, and disrupting money laundering activity in British Columbia and across Canada.

Nada Semaan, Director and Chief Executive Officer, Financial Transactions and Reports Analysis Centre of Canada said: “With this latest public-private sector partnership, we are committed to working with Canadian businesses and regulators, the provinces and territories, and our anti-money laundering and anti-terrorist financing regime partners to ensure the safety of Canadians and security of our economy. Our new Operational Alert will help us generate critical financial intelligence in support of Project Athena, and the federal government’s broader efforts to combat money laundering activity in British Columbia and across Canada.”

Semaan plans to discuss the alert Tuesday at a Fintrac forum in Ottawa intended to bolster co-operation against money laundering in the gaming sector.
The centre says it has made more than 30 financial intelligence disclosures so far in relation to Project Athena.

The alert and signs of money laundering was developed through the analysis of Fintrac’s financial intelligence in collaboration with the Combined Forces Special Enforcement Unit in British Columbia.