***Update Note added November 4, 2010: This B.C. Lottery Corporation filed a Federal appeal notice on October 29, 2010, which includes a complaint about the early release of the information related to the alleged violations. The fine amount was actually $695,750 according to the notice. See the article published by the Vancouver Sun here: http://www.vancouversun.com/entertainment/Lotteries+appeals+money+laundering+fine/3777814/story.html. A copy of the Notice of Appeal can be downloaded here.
Original Post:
The Vancouver Sun reported today that FINTRAC has fined the B.C. Lottery Corporation (BCLC) CAD 670,000 – it’s largest fine to date – for more than 1,000 violations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, largely due to misfiled Large Cash Transaction Reports (LCTRs), and due to failure to implement an Anti-Money Laundering Compliance Regime.
A large portion of the violations in reporting stem from filing LCTRs late, with other violations being related to reports not containing enough detail, particularly about the “occupation” of reported individuals, not collecting proper identification from patrons when cashing out amounts of CAD 10,000 or more, and not implementing a geographic and high-risk identification system by the regulatory deadline. According to the article, these fines come as a result of reoccurring issues discovered in 2 prior FINTRAC audits that had not been remediated.
BCLC’s CEO Micheal Graydon stated they “will do all that is necessary to address these concerns” and that enhanced processes for audit and review have already been implemented at BCLC. NDP Critic Shane Simpson wrote to the Minister in Charge of BCLC, Rich Coleman, demanding a full review of FINTRAC’s allegations.
These breaking fines have the Solicitor General of B.C., Mike De Jong, concerned about the potential for organized crime to misuse B. C. casinos and online gambling. FINTRAC Director, Jeanne Flemming, provided some insights into the gaming industry, and the findings of compliance evaluations conducted by FINTRAC at casinos in a speech last year at the Annual General Meeting of the Canadian Gaming Regulators Association. As quoted in the attached article, FINTRAC stated that “more can and should be done” by the sector to comply with the requirements (Speech – 2009-07-16-eng.asp).
If you’re concerned about your compliance regime, or have an upcoming FINTRAC evaluation, Williams McGuire AML Inc. can assist you.
Read more:
http://www.vancouversun.com/Lottery+Corp/3302793/story.html#ixzz0uLVQ8Guf,
http://www.cbc.ca/money/story/2010/07/30/f-money-laundering.html
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