VANCOUVER — The British Columbia Lottery Corporation (BCLC) is firing back at Canada’s financial watchdog after being slapped with a C$1.075 million fine for alleged anti-money laundering (AML) failures. The Crown corporation has launched an appeal in Federal Court, claiming the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) blindsided it with an unfair compliance exam.
At the heart of the dispute are three violations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act:
- Failing to file suspicious transaction reports when there were “reasonable grounds” to do so.
- Not maintaining up-to-date written AML policies and procedures.
- Failing to apply enhanced due diligence to a high-risk player.
FINTRAC singled out one of BCLC’s top slot players who was flagged for repeatedly wagering large stacks of $100 bills. Regulators argued the pattern fit red flags for potential laundering.
BCLC, however, is pushing back hard. In court filings, the lottery giant says it was “ambushed” by FINTRAC, denied procedural fairness, and penalized for subjective assumptions rather than hard evidence. “High-volume play alone is not money laundering,” the corporation argued, insisting that the regulator mischaracterized normal casino behavior as suspicious activity.
This clash lands at a sensitive moment for B.C.’s gaming sector, which has faced years of scrutiny over so-called “dirty money” flowing through Vancouver-area casinos. BCLC has since rolled out new safeguards, including stricter ID checks and cash transaction reporting. Still, the case underscores the ongoing tension between regulators demanding tighter compliance and operators saying they’re being unfairly targeted.
Industry analysts note the ruling could set a national precedent. If BCLC prevails, it may curb FINTRAC’s aggressive enforcement powers. If not, Canada’s casinos could be staring at more million-dollar fines for AML slip-ups.
