Atlantic Lottery pays $212K penalty to federal agency

Company does not plan to appeal compliance violations

The Atlantic Lottery Corporation has paid a $212,025 administrative penalty to Canada's financial watchdog for violating rules meant to report money laundering and terrorist financing.

The penalty was handed down on May 29 by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). According to a news release, the watchdog found the Moncton-based corporation committed three violations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The violations include failing to report a suspicious transaction, keeping internal rules up to date, and properly tracking the risk of financial crimes.

In a statement, Atlantic Lottery said it takes its obligations seriously, adding it has measures in place to deter financial crimes and is working closely with regulators and law enforcement to strengthen them.

The corporation — which provides lottery tickets, online games, sports betting and video lottery across the Atlantic provinces — said it is confident its compliance program meets or exceeds its requirements, but decided not to appeal.

FINTRAC said it has issued 35 non-compliance penalties to Canadian businesses over the past year, the highest number the watchdog has ever recorded.

Hope Edmond is a reporter based in Moncton.