Navigating the iGaming space in Ontario’s regulated market requires a strong understanding of Anti-Money Laundering (AML) and compliance regulations. Mondiu Jaiyesimi, Senior Manager of AML Regulatory Compliance and Forensics at MNP, shared key insights into the challenges operators face when applying for an iGaming license in Ontario.

Ontario’s Regulated iGaming Market

Ontario’s iGaming market, launched in April 2022, is overseen by iGaming Ontario (iGO) and the Alcohol and Gaming Commission of Ontario (AGCO). Operators must comply with stringent AML regulations to secure a license, including developing robust AML programs, submitting attestations, and ensuring data system readiness.

Key Compliance Challenges

1. AML Program: Operators must establish detailed AML policies and staff training.
2. AML Attestation: Attesting that staff are trained and systems are compliant.
   
3. Data Systems: Operators must confirm that their data systems align with AML requirements.
   
4. Reporting Access: Operators must ensure access to the necessary reporting tools for suspicious transactions.
   

Regulatory Bodies

• AGCO (Alcohol and Gaming Commission of Ontario): The main regulator for Ontario’s iGaming industry.
  
• iGO (iGaming Ontario): Manages the operations of licensed iGaming operators.
  
• FINTRAC (Financial Transactions and Reports Analysis Centre of Canada): Enforces AML regulations through iGO, although operators report to iGO.
  

Why AML Compliance is Critical

AML compliance ensures the integrity of the iGaming market, preventing money laundering and terrorist financing. Non-compliance can lead to penalties and reputational damage, making it essential for operators to stay up-to-date on regulations and employ effective compliance strategies.

Best Practices for Compliance

1. Audits: Regular internal and external audits help maintain compliance.
   
2. External Expertise: Hiring external AML professionals can support compliance efforts.
   
3. Reporting: Operators should stay on top of reporting deadlines and requirements.
   

The Role of Technology

Automated transaction monitoring systems using AI and machine learning can help operators identify suspicious activity and stay compliant with minimal effort.

Looking Ahead

While no major regulatory changes are expected soon, operators should monitor potential changes, such as new reporting formats and cybersecurity issues.

In conclusion, staying compliant with AML regulations is essential for operating successfully in Ontario’s iGaming market. With the right systems and strategies in place, operators can navigate the regulatory landscape effectively.

This information was provided by Mondiu Jaiyesimi, Senior Manager of AML Regulatory Compliance and Forensics at MNP.

Watch the podcast episode: https://youtu.be/P_GcIKdH8jA?si=60p27bBfLzNwynE4