The findings are administrative in nature and do not include any allegations of money laundering, terrorist financing, criminal activity or wilful misconduct by Atlantic Lottery or its players
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed an administrative monetary penalty on Atlantic Lottery relating to three compliance violations.
Following a compliance examination, Atlantic Lottery received an administrative monetary penalty of C$212,025 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and associated regulations.
The operator was found to have committed three administrative violations, including failing to submit a suspicious transaction report where there were reasonable grounds to suspect that a transaction or attempted transaction is related to the commission or attempted commission of a money laundering or a terrorist activity financing offence.
Atlantic Lottery also failed to develop and apply written compliance policies and procedures that are kept up to date and are approved by a senior officer, and failed to assess and document the risk of money laundering of terrorist activity financing offence, taking into consideration the prescribed factors.
“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians, the security of Canadian businesses and the integrity of Canada’s financial system,” said Stéphane Sirard, acting director and CEO of FINTRAC.
“The obligations in the Act deter criminals and terrorists from operating in the legitimate economy and ensure that FINTRAC receives the reporting needed to generate actionable financial intelligence in support of law enforcement and national security investigations. We will take firm action, when it is required, to ensure that businesses do their part and fulfill these obligations.”
In a statement, the operator reiterated that the findings are administrative in nature and do not include any allegations of money laundering, terrorist financing, criminal activity or wilful misconduct by Atlantic Lottery or its players.
“Atlantic Lottery takes its regulatory and compliance obligations seriously and remains committed to maintaining a robust anti-money laundering compliance program across its operations,” said the company. “The organization has established policies, procedures and controls designed to detect and deter money laundering and other financial crime. Atlantic Lottery works closely with regulators, law enforcement and industry partners to continuously strengthen those measures.
“While Atlantic Lottery has full confidence that its compliance program meets or exceeds its obligations, it is not in the best interest of Atlantic Canadians to divert funds that would otherwise be returned to provincial shareholders by disputing this penalty through a legal appeal. As such, Atlantic Lottery has paid the administrative penalty outlined by FINTRAC, concluding the examination.
“Atlantic Lottery looks forward to continuing to work with FINTRAC on ongoing improvements to its anti-money laundering compliance program and on ensuring that the regulatory framework keeps pace with the rapidly evolving Canadian gambling landscape.”