The Manitoba government has issued a directive requiring Manitoba Liquor & Lotteries (MLL) officials to report suspicious casino transactions directly to law enforcement, a move aimed at curbing money laundering linked to the drug trade. The new measure, announced by Premier Wab Kinew at Club Regent Casino on Monday, is expected to enhance police investigations and hold criminals accountable.
“This directive will help people build cases, that will help officers conduct investigations, and that will help hold people accountable who are responsible for the scourge of toxic drugs that we’re seeing, fentanyl and many other damaging drugs,” Kinew stated at the news conference.
Previously, MLL only reported suspicious transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the federal body responsible for monitoring financial crimes. Under federal law, casinos are required to report all cash transactions exceeding $10,000, as well as any activity suspected to be linked to money laundering.
FINTRAC then reviews these reports and determines whether to notify law enforcement. With the new directive, Manitoba follows the approach taken by Ontario and British Columbia, where casinos must report both to FINTRAC and directly to local police. Officials believe this will improve the speed and effectiveness of law enforcement responses.
Kinew was joined at the announcement by MLL CEO Gerry Sul and representatives from the RCMP and Winnipeg Police Service, all of whom emphasized the importance of intelligence-sharing in tackling financial crimes tied to drug trafficking.
“People who bring toxic drugs into Manitoba towns, neighborhoods, and First Nations need to be held accountable,” Kinew said.
Sul highlighted the risks money laundering poses to Canada’s financial system and the vulnerability of cash-heavy casinos. “At Manitoba Liquor and Lotteries, we take our job seriously and our duty to detect, deter, and report suspicious activities in our casinos,” he said. He also noted that the new directive will allow for greater intelligence-sharing with police and contribute to community safety.
Winnipeg Police Service Superintendent Cam Mackid explained the potential impact of this change. “We would anticipate an exponential gain in the intelligence that we’re getting, that we can act on,” Mackid said, confirming that city police expect to launch more money laundering investigations based on casino activity.
The province will allocate $325,000 toward new surveillance equipment to strengthen MLL’s anti-money laundering team, which will also expand its staff. The move comes amid heightened scrutiny over money laundering in Manitoba casinos.
In one high-profile case, alleged drug trafficker Mohammad Riyadul Hoque is accused of laundering over $10 million at Winnipeg casinos over three years before his arrest in September 2023. MLL had flagged him as a high-risk patron since 2015, reporting his activity to FINTRAC and, in 2022, to the RCMP, which launched a lengthy investigation leading to his arrest. His case remains before the courts.
MLL files nearly 5,000 reports to FINTRAC annually, with around 60% related to legitimate large transactions and about 400 flagged as suspicious. Many of the flagged reports involve repeat individuals.
Justice Minister Matt Wiebe announced he will send a letter to federal officials urging better coordination between FINTRAC and provincial law enforcement, arguing that Manitoba’s intelligence-sharing system can play a crucial role in combating financial crimes.
“We have a pretty sophisticated provincial system of sharing amongst our law enforcement agencies that can be a part of the solution here, when it comes to sharing this financial information,” Wiebe said.
