VANCOUVER – The British Columbia Lottery Corp. says it was wrongly penalized more than $1 million for anti-money laundering and terrorist financing violations earlier this year by a federal watchdog.
The lottery corporation says in a notice of appeal filed last week in Federal Court that the Financial Transactions and Reports Analysis Centre of Canada — known as FINTRAC — wrongfully penalized the company for three alleged violations.
It says it wasn’t notified it was under examination, and was instead “ambushed” by the anti-money laundering regulator without a chance “to correct FINTRAC’s misunderstandings and misapprehensions” about the casino and gaming industry.
The appeal says FINTRAC zeroed in on one unnamed casino patron who had been identified as the highest-volume slot machine player in the corporation’s rewards program, and was flagged for “their frequent use of $100 bills.”
The lottery corporation says it was issued $1,075,000 in administrative penalties in March for three alleged violations, including failing to report suspicious transactions, failing to keep up-to-date compliance policies and failing to take “special measures” related to the “high risk” patron.
The appeal dated Aug. 20 says the BC Lottery Corp. is seeking to set aside the penalties or have them reduced or sent back to the director of FINTRAC for reconsideration.
Neither the BC Lottery Corp. nor FINTRAC immediately responded to requests for comment.
This report by The Canadian Press was first published Aug. 27, 2025.
