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Cashier cages at Ontario casinos have reported a surge in suspicious activity

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The unprecedented volume of questionable monetary transactions at casinos has sparked demands for the province to enhance investigations into the origins of these suspicious funds.

Just as the US has the Bank Secrecy Act, which obligates financial institutions and cash-intensive businesses to file a suspicious activity report (SAR) when they suspect customers are attempting to evade reporting requirements through structuring, Canada also has regulations in place to combat money laundering.

Under Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), businesses classified as reporting entities are required to submit a suspicious transaction report “if there are reasonable grounds to suspect that a financial transaction is related to a PCMLTFA offense.”

Despite recent law enforcement efforts in Ontario to combat suspicious financial activities, the province’s 30 casinos witnessed an increase in reported suspicious transactions last year.

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The Ontario Premier remains unperturbed

Ontario Premier Doug Ford maintains a sense of reassurance despite the ongoing rise in suspicious activity reported at the province’s casinos. When questioned about this concerning trend, Ford expressed that the increased reporting indicates the effectiveness of the system.

During a recent media conference, Ford highlighted the collaborative efforts between the Ontario Lottery and Gaming Corporation (OLG) and the Ontario Provincial Police (OPP). He emphasized that whenever any suspicious activity is detected, the OLG promptly contacts the OPP, who conduct thorough investigations just like they would in any other case.

Ford further conveyed his unwavering trust in the capabilities of the OPP, stating, “I have full confidence in the OPP.”

However, not everyone shares the same level of confidence. In an interview with CTV News Toronto, two former Royal Canadian Mounted Police (RCMP) officers expressed their concerns regarding the increasing amount of suspicious activity, suggesting that the government should take more decisive action.

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Cal Chrustie, a former RCMP investigator experienced in handling money laundering and transnational crime, speculated that many of these cases involving substantial sums of money likely involve illicit funds.

Peter German, a former RCMP deputy commissioner, echoed Chrustie’s sentiment, emphasizing the need for financial regulators to thoroughly scrutinize the suspicious activity and determine if further investigations are necessary.

German emphasized the importance of careful examination of the numbers, as both over-reporting and under-reporting can occur. He stressed the significance of evaluating the quality of the transactions, and called for diligent follow-up by the regulatory body responsible for overseeing the OLG.

Although investigating over $372 million in transactions presents a formidable challenge, the OLG possesses a workforce of over 15,000 employees. In addition to regulating casinos, the OLG also oversees the province’s lottery operations, iGaming, and sports betting enterprises.

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Refined Procedure for Reporting

When Canadian businesses are obligated to submit suspicious transaction reports, these filings are directed to two entities: the OLG’s Anti-Money Laundering Team and FINTRAC, which stands for the Financial Transaction and Reports Analysis Center of Canada.

Upon receiving the reports, FINTRAC thoroughly examines each one and compiles a comprehensive transactional history for the individuals involved. Collaborating with the OLG, FINTRAC determines whether it is necessary to initiate further investigations into the origin of the funds.

Ontario Auditor General Bonnie Lysyk has emphasized the need for stronger measures to combat money laundering. In her 2022 evaluation of the OLG, Lysyk recommended that provincial legislators mandate casinos to verify the source of funds for cash and cash-equivalent transactions of CA$10,000 (US$7,450) or more at the point of purchase. This requirement aims to enhance scrutiny and accountability in detecting potential instances of money laundering.

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Jerome, a valuable addition to the Gamingo.News team, brings with him extensive journalistic experience in the iGaming sector. His interest in the industry was sparked during his college years when he participated in local poker tournaments, eventually leading to his exposure to the burgeoning world of online poker and casino rooms. Jerome now utilizes his accumulated knowledge to fuel his passion for journalism, providing the team with the latest online scoops.

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FDJ’s Acquisition of Kindred Group Shaping the Future of Global Gaming

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FDJ’s acquisition of Kindred Group, facilitated by regulatory approval and strategic shareholder engagement, signifies a transformative moment in the gaming industry. This deal exemplifies the intricate balance between regulatory compliance, shareholder value, and strategic growth ambitions. As the industry stands at the cusp of further consolidation and innovation, the FDJ-Kindred transaction heralds a new era of strategic realignment and competitive positioning in the global gaming landscape.


A Monumental Shift in Gaming Dynamics

The Swedish Financial Market Supervisory Authority (SFSA)‘s approval of Française des Jeux’s (FDJ) offer to acquire Kindred Group marks a pivotal moment in the global gaming and betting sector. This green light not only accelerates FDJ’s strategic expansion but also underscores the evolving landscape of international gaming regulations and corporate alignments.

Navigating Regulatory Waters

The SFSA’s endorsement is a crucial step in FDJ’s ambitious acquisition plan, setting the stage for a public offer slated to commence imminently. This regulatory approval highlights the meticulous scrutiny and compliance standards governing mergers and acquisitions within the sector, ensuring that such transactions align with market stability and shareholder interests.

A Call to Action for Kindred Shareholders

The forthcoming Extraordinary General Meeting (EGM) represents a critical juncture for Kindred Group, with proposed statutory amendments necessary for facilitating the acquisition. This meeting, aimed at achieving the requisite shareholder consensus, signals the importance of shareholder engagement in steering corporate direction and strategy.

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The Path to Acquisition: Shareholder Conviction and Strategic Vision

FDJ’s pursuit of Kindred Group, contingent upon securing 90% of total capital, reflects a strategic maneuver to consolidate its position in the global gaming market. The offer per share, valuing Kindred at approximately €2.6 billion, has garnered unanimous board endorsement and significant shareholder backing, illustrating the alignment of strategic interests and the perceived value of this consolidation.

Activist Influence and Strategic Realignment

The role of activist shareholders, notably Corvex Management, in advocating for Kindred’s sale underscores the dynamic interplay between corporate governance and shareholder activism. Their successful campaign for board representation and strategic evaluation reflects a broader trend of active investor engagement in shaping corporate trajectories.

Implications for the Global Gaming Industry

This acquisition not only exemplifies the financial and strategic considerations underpinning such deals but also highlights the regulatory complexities and shareholder dynamics involved. As the gaming industry continues to evolve, driven by technological advancements and regulatory changes, the FDJ-Kindred merger serves as a case study in strategic growth, market consolidation, and the pursuit of competitive advantage.

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