FINTRAC slaps Atlantic Lottery With Fine For Compliance Failures
Atlantic Lottery has been fined C$212,025 by Canada’s financial intelligence agency after an examination found the Crown corporation had breached several anti-money laundering compliance requirements.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced on Friday that it imposed the administrative monetary penalty on Atlantic Lottery in late May following a compliance examination of the casino operator.
According to FINTRAC, Atlantic Lottery committed three administrative violations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated regulations.
The regulator found the lottery operator failed to submit a suspicious transaction report where there were reasonable grounds to suspect a transaction or attempted transaction was linked to money laundering or terrorist financing. It also cited failures to maintain up-to-date written compliance policies and procedures approved by a senior officer, and to properly assess and document money laundering and terrorist financing risks.
“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,” FINTRAC Acting Director and CEO Stéphane Sirard said.
“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 fulfil these obligations.”
Atlantic Lottery, which operates gambling products across New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador, has paid the C$212,025 penalty in full, with FINTRAC confirming the case is now closed.
In a statement, Atlantic Lottery stressed the findings were administrative in nature and did not involve allegations of money laundering, terrorist financing, criminal activity or wilful misconduct by either the corporation or its customers.
“The findings are administrative in nature and do not include any allegations of money laundering, terrorist financing, criminal activity or willful misconduct by Atlantic Lottery or its players,” the operator said.
Atlantic Lottery said it remains committed to maintaining a robust anti-money laundering compliance programme and has established policies, procedures and controls designed to detect and deter financial crime across its operations.
The operator added that it continues to work closely with regulators, law enforcement agencies and industry partners to strengthen its compliance framework.
While the Crown corporation said it has “full confidence” that its compliance programme meets or exceeds its regulatory obligations, it elected not to challenge FINTRAC’s decision through the courts.
“Atlantic Lottery has paid the administrative penalty outlined by FINTRAC, concluding the examination,” it said, adding that pursuing a legal appeal would not be in the best interests of Atlantic Canadians because it would divert funds that would otherwise be returned to the four provincial governments that own the corporation.
Atlantic Lottery said it now looks forward to continuing to work with FINTRAC on further improvements to its anti-money laundering programme and to ensuring Canada’s regulatory framework keeps pace with the rapidly evolving gambling industry.
The penalty is the latest enforcement action by FINTRAC against Canada’s gambling sector, as the regulator continues to increase its scrutiny of anti-money laundering controls across casino and gaming operators.
