FINTRAC fines Atlantic Lottery for AML compliance failures

A compliance review found three infractions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related rules.

Canada.- FINTRAC has announced that it fined the Atlantic Lottery Corporation C$212,025 (US$149,700) for breaking Canada’s anti-money laundering and anti-terrorist financing laws. The penalty was issued on May 29 after a compliance review found three infractions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related rules.

Atlantic Lottery neglected to file a suspicious transaction report when there were good reasons to suspect a connection to money laundering or terrorist financing, the Canadian financial watchdog said. Additionally, the company did not maintain current written compliance policies and procedures that had been approved by a senior officer, and it failed to adequately assess and document its risks related to money laundering and terrorist financing as mandated.

In a statement, FINTRAC said: “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. 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 fulfil these obligations.”

The company has settled the penalty in full,