Information Bulletin: Standards Changes — Minimizing Unlawful Activity Related to Gaming for Land-Based Operators

July 9, 2021

Changes to the Registrar’s Standards pertaining to the minimization of unlawful activity and money laundering will come into effect by the end of the calendar year. These changes support the industry’s ongoing efforts to combat money laundering and financial crime.

Revisions include updates to Standard 6 to establish new requirements for Operators to identify and prevent suspected money laundering activities. The updated Standards will require Operators to:

• Implement risk-based policies to ascertain and reasonably corroborate a patron’s source of funds;
• Have escalating measures in place to address patrons who engage in behaviour that is consistent with money laundering indicators, including the refusal of transactions or exclusion of the patron;
• Establish a threshold of $3,000 for Operators to obtain patron information on both buy-ins and payouts for single transactions;
• Have mechanisms in place to share information in a lawful manner about high risks or suspicious activities with other Operators which may also be subject to similar activity; and
• Ensure their internal controls are aligned with those of the designated reporting entity under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Revisions to the Standards are driven by policy objectives consistent with the overall changing landscape of gaming, anti-money laundering (AML) obligations and regulatory requirements in other jurisdictions. The updates also align with federal requirements and reflect recommendations from the Auditor General of Ontario along with input and feedback from industry stakeholders.

6. MINIMIZING UNLAWFUL ACTIVITY RELATED TO GAMING

6.1 Mechanisms shall be in place to reasonably identify and prevent unlawful activities at the gaming site.

Requirements – At a minimum, the Operator shall:

1. Conduct periodic risk assessments to determine the potential for unlawful activities, including money laundering, fraud, theft and cheat at play.
2. Ensure that all relevant individuals involved in the operation, supervision or monitoring of the gaming site shall remain current in the identification of techniques or methods that may be used for the commission of crimes at the gaming site.
3. Appropriately monitor patron and employee transactions, including the ongoing analysis of incident reports and suspicious transactions for possible unlawful activity.
4. Report suspicious behaviour, cheating at play and unlawful activities in accordance with the established notification matrix.

6.2 Anti-money laundering policies and procedures to support obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) shall be implemented and enforced.

Requirements – At a minimum:

1. Copies of all reports filed with FINTRAC and supporting records shall be made available to the Registrar in accordance with the established notification matrix.
2. Operators shall ensure their anti-money laundering internal controls align with those of the designated reporting entity under the PCMLTFA.

6.3 Reasonable measures shall be in place to identify and prevent suspected money laundering activities at the gaming site.*

Requirements – At a minimum, the Operator shall:

1. Maintain logs for single transactions of $3,000 or more involving the receipt of funds from, and payments to, patrons. At a minimum, the logs must include the transaction date, amount, currency and the patron’s name, account number, home address, date of birth, occupation, the date identity was ascertained, the type of ID document reviewed, ID number, issuing jurisdiction and expiry date (if applicable).
2. Implement policies, procedures and controls that specify times and situations, based on the assessment of risk, where the Operator will ascertain and reasonably corroborate a patron’s source of funds.
3. Implement risk-based policies and procedures that provide for escalating measures to deal with patrons who engage in behaviour that is consistent with money laundering indicators, including the refusal of transactions or exclusion of the patron.

Ensure that mechanisms are in place to share information, in a lawful manner, about high risks or suspicious activities with other Operators which may also be subject to similar activity.