N.B. and N.S. gaming Crown corporations fined for failures in money laundering reporting

Canada’s federal anti-money laundering agency, the Financial Transactions and Reports Analysis Centre of Canada (Fintrac), has imposed administrative monetary penalties on the Crown corporations responsible for gaming activities in New Brunswick and Nova Scotia. In announcements made on September 3, 2026, Fintrac disclosed that the New Brunswick Lotteries and Gaming Corporation received a fine of nearly $400,000, while the Nova Scotia Gaming Corporation was fined almost $232,000. Both organizations have paid the penalties, and the related investigations are now closed.

The fines are a result of failures to submit suspicious transaction reports when there were reasonable grounds to suspect money laundering or terrorist activity, as required by Canadian federal law. Fintrac’s news release emphasized that regulated businesses are obligated to file such reports to deter criminals and terrorists from accessing the legitimate economy. Stéphane Sirard, Fintrac’s acting director and CEO, stated, “We will take firm action, when it is required, to ensure that businesses do their part and fulfil these obligations.”

The investigations and resulting penalties relate specifically to the Atlantic Lottery Corporation’s online casino operations. The Atlantic Lottery Corporation is jointly owned by the governments of New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. The fines do not pertain to physical casinos or other brick-and-mortar gaming operations, but rather to the digital platforms operated by the Crown corporations.

According to statements from both provinces, the infractions were administrative in nature. Spokespeople clarified that the fines relate to compliance processes and not to any proven incidents of criminal activity. New Brunswick’s finance minister, René Legacy, said in an emailed statement that no evidence of money laundering was found as part of the audit process. He added, “It is important to point out that the degree of real harm associated with any of the audit findings was minimal.”

Nova Scotia’s case involved two specific transactions where required reports were not submitted to Fintrac. Rachel Boomer, spokesperson for the Nova Scotia Gaming Corporation, identified the transactions as valued at $750 and $465. Boomer stressed that there was no evidence of money laundering connected to these incidents. She said the corporation took immediate action by investigating, banning, and suspending the players involved. In response to Fintrac’s concerns, Nova Scotia Gaming Corporation has since revised its internal policies.

In addition to the reporting failures, Fintrac cited the Nova Scotia Gaming Corporation for lacking up-to-date written compliance policies and for failing to document the assessed risk of money laundering or terrorist activity financing offences. These requirements are part of the broader federal anti-money laundering and anti-terrorist financing regulatory regime, which applies to a wide range of businesses and organizations across Canada.

The obligations under Canadian law require entities such as gaming corporations to maintain compliance programs, assess and document risks, and report suspicious transactions to Fintrac. These measures are intended to create a paper trail for potentially illicit financial activity, enabling law enforcement and regulatory authorities to detect, deter, and investigate financial crimes.

The Atlantic Lottery Corporation’s online casino operations generate significant revenue for the four Atlantic provinces, and their digital nature presents unique challenges for monitoring transactions and ensuring compliance. Online gaming platforms can be vulnerable to attempts to move or conceal the proceeds of crime, making robust anti-money laundering controls particularly important.

The response from both provincial governments has been to characterize the infractions as technical or procedural, rather than substantive lapses that allowed money laundering to occur. Both the New Brunswick and Nova Scotia spokespeople emphasized that the findings did not indicate the presence of criminal activity, and both provinces have indicated that corrective actions have been taken.

Fintrac’s enforcement actions are part of its broader mandate to ensure that entities subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act are fulfilling their legal obligations. The agency has the authority to impose administrative monetary penalties for non-compliance, in addition to referring more serious cases to law enforcement for potential criminal investigation. The size of the fines in this case reflects the seriousness with which Fintrac views failures to report suspicious transactions and maintain adequate compliance frameworks, even in the absence of proven money laundering.

The case highlights the ongoing regulatory scrutiny faced by Canadian gaming operators, particularly those with online platforms. It also underscores the federal government’s focus on strengthening the country’s anti-money laundering regime following a series of high-profile investigations and reports into money laundering risks in various sectors, including casinos, real estate, and financial services.

For the Atlantic provinces, the incident has prompted a review of internal policies and procedures governing online gaming. The public statements from Nova Scotia and New Brunswick indicate a commitment to improving compliance and preventing future lapses. The outcome also signals to other Crown corporations and regulated entities that Fintrac monitors compliance actively and will take enforcement action when legal requirements are not met.

The incident serves as a reminder of the broader risks associated with online gaming and the importance of rigorous anti-money laundering oversight. As online gambling continues to expand in Canada, regulators, operators, and governments face ongoing challenges in balancing the growth of the sector with the need to protect the financial system from abuse.