Ontario’s booming iGaming industry has been caught in a regulatory bind due to a prolonged outage of FINTRAC’s Web Reporting System (FWR), which has been offline for over a year following a cyberattack in March 2024. The FWR system is essential for online casino operators to file Suspicious Transaction Reports (STRs) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
The disruption has raised alarms about potential vulnerabilities in Canada’s anti-money laundering (AML) framework, particularly in a sector seeing exponential digital growth. Without digital tools to report suspicious activity, iGaming operators have been forced to rely on paper-based alternatives and secure file transfers — methods seen as inefficient and burdensome.
FINTRAC Highlights Emerging Risks in the Canadian Gambling Sector and Key Figures
FINTRAC has since been working on restoring the system and reinforcing its cybersecurity defenses. Still, the damage may already be done: the gap in oversight could have enabled unmonitored illicit transactions, undermining trust in Ontario’s regulated gambling environment. Industry analysts stress the importance of a resilient digital infrastructure for AML compliance. Operators are now urged to update their internal controls and remain agile in the face of technological vulnerabilities — a lesson the Canadian gaming sector won’t soon forget.
