Canada’s British Columbia Lottery Corporation (BCLC) is appealing against an administrative monetary penalty of CA$1.075 million imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for alleged anti-money laundering failings.
FINTRAC had issued BCLC with a notice of violation in March following an investigation into alleged administrative deficiencies pertaining to anti-money laundering (AML) legislation.
These included a failure to report suspicious transactions, a failure to develop and apply policies and procedures for high-risk clients, and a failure to take special measures for high-risk clients.
After receiving the notice, BCLC conducted a thorough review of FINTRAC’s findings and provided the financial intelligence agency with information counter to its conclusions.
Despite this information, 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.
Sarah Paquet, director and CEO at FINTRAC, said: “Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part, and we will take appropriate actions when they are needed.”
BCLC will appeal FINTRAC’s decision to the Federal Court.
“BCLC takes its responsibilities under Canadian anti-money laundering legislation very seriously,” said the provincial operator. “It is confident in its position that it has fully complied with all its legal and regulatory obligations. The findings do not include allegations of any criminal offence.”
BCLC oversees all legal gambling products in the province of British Columbia, including lottery tickets, casinos and online gambling.