BC Lottery Corporation Challenges $1 Million FINTRAC Anti-Money Laundering Fine in Federal Court
Introduction to the Dispute
The British Columbia Lottery Corporation (BCLC) is contesting a significant penalty imposed by federal regulators. The crown agency has formally filed an appeal in Federal Court following a levy of over $1 million in fines linked to alleged breaches of anti-money laundering (AML) regulations.
BCLC’s Claim of Being “Ambushed” by FINTRAC
The organization responsible for PlayNow, a major gambling platform, argues that the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) enforced sanctions without prior warning or opportunity to address concerns. According to BCLC’s appeal submitted on August 20, the corporation claims it was taken by surprise during the investigation and was not given a fair chance to clarify misunderstandings concerning its operations within the gaming industry.
In a recent statement, BCLC emphasized its dedication to complying with Canadian AML laws, asserting its commitment to combating money laundering and terrorist financing.
Issues Around the Monitoring of a High-Volume Gambler
BCLC contends that FINTRAC overemphasized the player’s gambling volume when assessing suspicious activity, criticizing the regulator for improperly assuming the individual’s high gambling volume alone was grounds for concern.
The corporation argues that the amount of money wagered should not be viewed in isolation as an indicator of money laundering or terrorist financing, describing FINTRAC’s assessment as subjective and influenced by moral judgments rather than objective regulatory criteria.
Concerns Regarding Cultural and Communication Barriers
Furthermore, BCLC disputes FINTRAC’s assertion that a suspicious transaction report ought to have been filed based on the player’s conduct and statements during interviews. The corporation raises the possibility that language or cultural differences might have affected this interaction, suggesting the regulator failed to consider if perceived uncooperativeness or inconsistencies might stem from these factors.
Details of FINTRAC’s Penalties and BCLC’s Appeal Goals
In March, FINTRAC imposed administrative fines totaling $1,075,000 against BCLC for three supposed violations: failing to report suspicious activities, outdated compliance policies, and insufficient special measures in handling the identified high-risk player.
Through its ongoing appeal, BCLC seeks to have these penalties either overturned, reduced, or alternatively, returned to FINTRAC for a renewed review process.
