Region

Jurisdiction

Regulator

2025-08-28

FINTRAC imposes an administrative monetary penalty on British Columbia Lottery Corporation

FINTRAC imposed a $1,075,000 administrative monetary penalty on the British Columbia Lottery Corporation for violating Canada’s anti-money laundering and anti-terrorist financing regulations. The enforcement action follows a compliance examination that identified three specific violations: the failure to report suspicious transactions, the absence of policies for high-risk clients, and the lack of required special measures for those clients. This penalty reinforces the regulatory framework under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which mandates strict reporting and compliance protocols for all designated businesses.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

August 28, 2025 — Ottawa — Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on British Columbia Lottery Corporation, also operating as BCLC. Following a compliance examination, this reporting entity in the casino sector, headquartered in Kamloops, British Columbia, was imposed an administrative monetary penalty of $1,075,000 on July 17, 2025, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

British Columbia Lottery Corporation was found to have committed the following administrative violations:

Failure to report suspicious transactions.

Failure to develop and apply policies and procedures for high-risk clients.

Failure to take special measures for high-risk clients.

British Columbia Lottery Corporation oversees all legal gambling products in the province of British Columbia, including lottery tickets, casinos and online gambling.

Quote

"Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed."

Quick facts

As Canada's financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor, FINTRAC ensures that businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act comply with their obligations under the Act and associated Regulations. The Centre also analyzes information and discloses financial intelligence to law enforcement and national security agencies to assist their investigations of money laundering, terrorist activity financing, sanctions evasion and threats to the security of Canada.

Casinos, financial entities, money services businesses, real estate brokers and sales representatives and several other business sectors are required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to keep certain records, identify clients, maintain a compliance regime and report certain financial transactions to FINTRAC, including international electronic funds transfers, large cash transactions, large virtual currency transactions and suspicious transactions.

Suspicious transaction reporting, in particular, is critical to FINTRAC's ability to generate actionable financial intelligence for Canada's law enforcement and national security agencies.

Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, administrative monetary penalties are meant to encourage change in the non-compliant behaviour of businesses.

In 2024–25, FINTRAC issued 23 Notices of Violation of non-compliance to businesses, the largest number in one year in the Centre's history, for a total of more than $25 million.

FINTRAC has imposed more than 150 penalties across most business sectors since it received the legislative authority to do so in 2008.