Canada’s Gaming Sector Supports Stricter AML in Regulatory Review

Led by the Canadian Gaming Association (CGA), calls for stronger anti-money laundering (AML) regulations are growing in number. With pressure from domestic stakeholders and international allies, particularly the United States, 2025 could bring Canada’s gambling industry a long-awaited AML gambling reform.

The Canadian Gaming Association’s Proactive Stance

The Canadian Gaming Association has been at the forefront of advocating for stricter AML gambling laws. In its 2024 Advocacy Policies, the CGA highlighted its intent to actively participate in the parliamentary review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTF Act).

This act, which has been a cornerstone of Canada’s AML efforts since its inception in December 2001, is due for updates that reflect the evolving landscape of the gaming industry.

Why the Push for Change?

Canada’s AML regulations have been scrutinized in recent years, with critics pointing to their perceived leniency compared to international standards. Newly re-elected US President Donald Trump has been particularly vocal, suggesting that Canada’s AML online gambling framework needs to be more stringent to prevent cross-border money laundering activities that support drug trafficking operations in the US.

David Asher, a key advisor to President Trump and an expert in criminal finance, articulated how Canada’s networks facilitated these illicit activities. His statements have fueled the ongoing debate surrounding the need for regulatory reform.

Domestic Pressures and Political Dynamics

Meanwhile, on a local basis, Pierre Poilievre’s Conservative Party is another supporter of the AML online gambling cause. As a section of its policy on crime, the party intends to pursue stricter anti-money laundering regulations, which backs Asher’s cross-border concerns and addresses existing loopholes.

The Role of the Gaming Industry

Canada’s gambling sector has experienced significant growth. In particular, Ontario’s open gaming market has positioned it as one of North America’s largest and most valuable. Other provinces, such as Alberta, are also preparing to launch regulated Canadian online casinos by the end of 2025. Consequently, the need for AML in gambling becomes increasingly critical.

Challenges in Enforcing AML Regulations

The digital nature of the gaming industry presents some difficulties for KYC and AML in online gambling. FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) has already issued warnings about online gambling laundering gains from fentanyl trafficking.

Individuals associated with the drug trade have allegedly deposited large sums in online casinos, subsequently withdrawing funds from payment processors in Canada, Malta, and the United Kingdom, disguising these as gambling winnings.

What concerns investigators is the way these activities obscure the true source of the funds. Using payment processors makes these transactions seem legitimate to banks and other financial institutions, making it much harder to detect illegal activities. Although regulated platforms have policies in place to prevent suspicious transfers, they are not infallible. Additionally, unlicensed operators frequently lack gambling AML software.

Conclusion

Local and international pressures might indeed influence major changes in law. We hope that 2025 brings the much-needed AML regulatory shifts in Canada not only because it would benefit the country’s safer gaming market but also because of its part in the worldwide effort against financial crime.