CNE Casino Hit with Six-Figure Fine for Regulatory Breaches
The Canadian National Exhibition (CNE) Casino has been hit with a $199,000 administrative penalty by Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) for shortcomings in its anti-money laundering and anti-terrorist financing protocols.
LISTEN TO THIS ARTICLE:The fine was imposed following a routine compliance examination, which found that the casino violated two rules under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
According to FINTRAC, the breaches are serious, but do not indicate actual illegal activity. The casino had failed to conduct and document a proper risk assessment for money laundering and terrorist financing risks associated with its products, services, and delivery channels, and did not establish an effective compliance program to mitigate those risks.
The second violation involved inadequate policies and controls to ensure ongoing compliance with the PCMLTFA, including record-keeping and employee training requirements. These lapses occurred despite the casino's status as a low-risk, seasonal operation compared to larger commercial casinos.
CNE to Fight Fine
In its official response to the fine, the CNE Association, which operates the casino, asserted its commitment to regulatory standards. The operator vowed to challenge the penalty in Federal Court, maintaining that it had not engaged in any criminal activity and that the issues were purely administrative.
We are disappointed with FINTRAC's decision and believe the administrative monetary penalty is disproportionate to the circumstances. The CNE has always operated with integrity and has never been involved in any money laundering or terrorist financing activities. We are appealing this matter to ensure a fair review.
The company’s appeal, filed shortly after the fine's imposition, argues that the penalties overlook the charitable nature of the operation and the steps already taken to address the findings.
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Industry and Regulatory Context
This development is part of a wave of increased scrutiny on Canada's gaming sector by FINTRAC, stepping up enforcement since 2022 to combat the infiltration of illicit funds through gambling establishments.
Certain casinos in Ontario, including those in Niagara Falls and Windsor, have faced multimillion-dollar fines in recent years for similar compliance failures, often linked to organized crime syndicates using gambling to "clean" dirty money.
Why now? Because FINTRAC is doubling down on prevention in the post-pandemic era, where digital and cash-based crimes have evolved. For charities like the CNE, this serves as a wake-up call: even good intentions don't excuse skipping the paperwork on risk assessments. It's a reminder that compliance isn't optional; it's the price of doing business in cash-heavy industries. Success in the appeal could set a precedent for leniency toward non-profits, but failure might lead to more fines across Ontario's fairground casinos.
Thompson added that the fine's amount, which was calculated based on the severity and duration of non-compliance, reflects FINTRAC's formulaic approach, which can reach up to $500,000 per violation for corporations. However, it was moderated in this case due to the entity's cooperative stance during the investigation.
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