Gaming corporation, BCLC, challenges FINTRAC fine for alleged shortcomings in anti-money laundering practices

The British Columbia Lottery Corporation (BCLC) is appealing against a CA$1.075 million administrative monetary penalty imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The penalty was imposed due to alleged anti-money laundering failings by BCLC.

FINTRAC, responsible for enforcing compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations, issued a notice of violation to BCLC in March following an investigation into administrative deficiencies related to anti-money laundering (AML) legislation.

The investigation found several issues, including BCLC's failure to report suspicious transactions, develop and apply policies and procedures for high-risk clients, and take special measures for high-risk clients.

Sarah Paquet, Director and CEO at FINTRAC, emphasized the importance of Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime in protecting the safety of Canadians and the security of Canada's economy. She stated that FINTRAC works with businesses to help them understand and comply with their obligations under the Act.

Despite these findings, FINTRAC upheld the decision and imposed the monetary penalty for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations.

The CEO of BCLC takes the responsibilities under Canadian anti-money laundering legislation very seriously. After receiving the notice, BCLC conducted a review of FINTRAC's findings and provided counter-information to the financial intelligence agency.

BCLC maintains that it has fully complied with its legal and regulatory obligations under Canadian anti-money laundering legislation. The appeal process will determine whether BCLC needs to take additional measures to ensure compliance with anti-money laundering regulations.

It is important to note that the findings do not include allegations of any criminal offence. FINTRAC ensures that businesses continue to do their part in preventing money laundering and terrorist financing, and it will take appropriate actions when needed.

The penalty imposed by FINTRAC on BCLC will be appealed in the Federal Court. The name of the person who upheld FINTRAC's decision regarding BCLC's violation of the anti-money laundering law is not publicly specified.

As a provincial operator that oversees all legal gambling products in British Columbia, including lottery tickets, casinos, and online gambling, BCLC plays a crucial role in maintaining the integrity of the gambling industry and ensuring the safety of the public. The ongoing appeal is expected to shed more light on the issues at hand and provide insights into the steps that BCLC is taking to address the concerns raised by FINTRAC.

Gaming corporation, BCLC, challenges FINTRAC fine for alleged shortcomings in anti-money laundering practices