Published on: August 28, 2025, 01:03h.

Updated on: August 28, 2025, 01:03h.

• BCLC faces a penalty exceeding $1 million following AML investigation at a casino
• Provincial authority indicates it will contest the ruling
• BCLC alleges it was “taken by surprise” by FINTRAC’s notice of breach

The British Columbia Lottery Corporation (BCLC) has declared its intention to appeal to the Federal Court against a ruling by a national financial regulator that imposed a fine exceeding $1 million for breaches of anti-money laundering (AML) regulations.

Investigation into Money Laundering

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) issued a Notice of Violation to BCLC on March 20, 2025, following a thorough probe into allegations of money laundering and terrorist financing as well as supposed operational shortcomings related to AML laws.

The lottery agency faced penalties due to three alleged infractions of the Proceeds of Crime (money laundering) and Terrorist Financing Act.

BCLC emphasized in its statement that the findings did not imply any criminal conduct.

BCLC’s Appeal Process

“Upon receiving the Notice of Violation, BCLC conducted an extensive review of FINTRAC’s conclusions and presented evidence contradicting its findings; nonetheless, the Director and Chief Executive Officer of FINTRAC maintained the ruling,” BCLC stated.

According to reports from Canadian Press, the appeal highlights that FINTRAC concentrated on a particular casino patron, recognized as the most frequent slot machine player in BCLC’s rewards system, noted for “their repeated use of $100 bills.”

Canadian Press reported that BCLC asserted in its appeal: “The volume wagered alone should not be deemed a relevant criterion under FINTRAC’s money laundering and terrorist financing indicators. The director’s reasoning appears to reflect a moral or subjective judgment rather than an unbiased enforcement of regulatory standards.”

The Context of AML in British Columbia

In its communication, BCLC stated it “takes its obligations under Canadian anti-money laundering laws very seriously. It believes it has fully met all its legal and regulatory responsibilities.”

BCLC contended that it was inadequately informed of its investigation status and felt “ambushed” by the FINTRAC Notice of Violation, lacking the opportunity to address FINTRAC’s “misunderstandings and misinterpretations” regarding the casino.

An industry insider told Casino.org: “While specifics about this particular case between FINTRAC and BCLC are unclear, it’s noteworthy that this lottery corporation has a record of not adhering to AML regulations. It’s challenging to adopt a victim stance when the BCLC has been implicated in the largest money laundering scandal in Canadian history, as indicated in the Peter German Report and the Cullen Commission Inquiry.”

“Perhaps the BCLC should prioritize organizing its own operations instead of initiating lawsuits aimed at influencing how other provinces manage their gambling enterprises.”

Insights from the German Reports

The Peter German Reports published in 2018 and 2019 unveiled significant shortcomings in British Columbia’s gaming sector concerning money laundering, particularly highlighting operational practices at BCLC casinos and their effectiveness in combating illicit activities.

The Cullen Commission Inquiry conducted in 2022 further scrutinized money laundering activities in British Columbia, revealing that BCLC and other regulatory bodies failed to take “effective” action on repeated alerts about suspicious cash transactions occurring within B.C. casinos.