Atlantic Lottery pays price for failing to report suspicious transaction

Atlantic Lottery Corporation Inc. has been hit with a hefty fine after it was discovered the corporation failed to report a suspicious transaction. On July 9, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) issued a release saying a monetary penalty of $212,025 was imposed on May 29, after an investigation found the [...]

Article content Atlantic Lottery Corporation Inc. has been hit with a hefty fine after it was discovered the corporation failed to report a suspicious transaction. On July 9, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) issued a release saying a monetary penalty of $212,025 was imposed on May 29, after an investigation found the corporation had committed non-compliance violations under Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations. FINTRAC discovered three violations, including the failure to submit a suspicious transaction report where there were reasonable grounds to suspect a transaction or attempted transaction was related to the commission or attempted commission of a money laundering or terrorist activity financing offence.

The other violations included a failure to develop and apply written compliance policies and procedures that are updated and approved by a senior officer as well as failure to assess and document the risk of money laundering or a terrorist activity financing offence, taking into consideration the prescribed factors. Atlantic Lottery issued a statement on July 10, saying 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 statement says Atlantic Lottery takes its regulatory and compliance obligations seriously and remains committed to maintaining a robust anti-money laundering program across its operations.

“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,” it reads. FINTRAC’s acting director and chief executive officer Stéphane Sirard explained the fine in the release.

“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,” he 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 fulfill these obligations.”

Atlantic Lottery says while it has full confidence that its compliance program meets or exceeds its obligations, the corporation will not dispute FINTRAC’s findings through a legal appeal. “It is not in the best interest of Atlantic Canadians to divert funds that would otherwise be returned to provincial shareholders,” the statement reads. “As such, Atlantic Lottery has paid the administrative penalty outlined by FINTRAC, concluding the examination.”

Atlantic Lottery says it will continue to work with FINTRAC on ongoing improvements to its anti-money laundering compliance program.