Canadian government passes new anti-money laundering laws
As a result of new legislation passed in Canada, all casino operators will face increased monitoring requirements and increased reporting. The new legislation, which was passed in July, is officially called the Regulations Amending Certain Regulations Made Under the Proceeds of Crime and Terrorist Financing Act. In essence, the new law is designed to curb money laundering that is sometimes associated with companies and entities that conduct a lot of financial transactions – and casinos fall into this umbrella. Basically, transactions that are at least $10,000 must be reported to the Financial Transactions and Analysis Centre of Canada. Casinos must also report any disbursements they make with a value of at least $10,000. This includes any cash withdrawal a player makes as well as any redemption they make of tokens, plagues or chips. While the new law will regulate casino operators, casino players shouldn’t have too much to worry about.
What else must casinos now do?
In addition to reporting requirements for any transaction with a value of at least $10,000, casino operators are now required, under the law, to keep detailed records of each and every one of these financial transactions. Operators must also keep very detailed information on every new account that they open, and it must include all pertinent information of the account holder.
Casino operators are required to do due diligence on each and every individual who opens a new account, in an effort to curb money laundering and other illegal activity associated with gambling. In addition to the person who opens the account, the casino operator must do the same for any other person who is associated with the account and/or authorized to conduct transactions or get information about the account.
Further, the new law requires casino operators to do extra due diligence to verify the identity and legality of any third party trying to conduct transactions on the primary account holder’s behalf. As such, the operator is required to fully vet and verify any third parties, and attempt to establish contact and communication with that third party.
How will the law affect players?
Ultimately, Canada’s new anti-money laundering law may not affect the majority of gamblers in the country. That’s because most people who participate in gambling either at in-person casinos or at online gambling sites don’t often conduct transactions that are valued at $10,000 or more. The new law really only specifically details new rules and regulations for transactions of at least that much.
For those players who do routinely conduct transactions of this amount with casinos, the new laws may cause a slight headache and extra verification from the casino operator to the player, but the player should happily welcome this. As long as the player is conducting legal, acceptable transactions, then they have nothing to worry about. While they may be required to verify extra information, this should be viewed as a good thing in the big picture.
Canada’s government is trying to step up and put extra safeguards in place to prevent money laundering, and casino players in the country should welcome the new measures being put in place. They don’t have to worry that these new regulations will prevent them from playing at online casinos or in-person casinos in the country, and that’s ultimately what most players care about.
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