AGCO fines Fallsview Casino $70K for Anti-money laundering violations

The Alcohol and Gaming Commission of Ontario (AGCO) has recently fined Fallsview Casino, located 3.5km from Niagara Falls, a hefty fine of $70,000. 

This fine was given in light of some anti-money laundering violations committed by the land-based casino. 

The incident that caused such a hefty penalty to be given involved a ‘high-risk’ patron of the casino and resort who, in an effort to exchange a large amount of cash for gambling chips, is suspected of being involved in an intricate money laundering scheme. 

More information about the incident in question 

This incident that led to this penalty took place in April of 2023, when a patron of the casino entered the building with a reusable grocery bag. 

Upon entering the Salon Privé, an area of the casino commonly described as an ‘exclusive high limit gaming area’ that offers ‘wagering as high as five figures’, the patron in question approached the staff to exchange a total of $80,000 in strapped $100 bills. 

His intention for exchanging this large amount of cash, he stated, was to use the $100 bills for casino chips. 

After having successfully exchanged his money, however, the patron left the table, and then the casino itself, without playing even a single round of gameplay. 

All this information was revealed, and thus confirmed, with the use of several surveillance cameras that captured the individual in the act. 

Despite the obvious cause for concern, and the several instances that gave the casino a justified reason to sound the alarm, stated the AGCO, Fallsview Casino and Resort did nothing to prevent this from occurring. 

The AGCO’s comments and those of Fallsview Casino’s representatives 

In a statement, the AGCO remarked on the following: 

“Despite having previously identified the player as ‘high risk,’ the casino failed to notify the AGCO and on-site police of this transaction as required. The casino operator also failed to take any meaningful steps to ascertain and corroborate the patron’s source of funds, as is required by anti-money laundering rules set out in the Registrar’s Standards for Gaming.” 

In addition to this, Dr. Karin Schnarr, the CEO and Registrar of the AGCO, stated the following: 

“The AGCO is committed to protecting the public interest and public safety and remains vigilant in its efforts to guard against potential money laundering at Ontario’s gaming sites. Casino operators are important front-line partners in this effort, and the AGCO holds all operators to rigorous standards when it comes to the prevention of unlawful activity.” 

In reaction to this fine and the statement made by the AGCO, a representative of Niagara’s Fallsview Casino stated that they “respectfully disagree” and will thus be appealing the decision that has been made.