Atlantic Lottery fined $212K for failing to submit report on suspicious transaction

The Atlantic Lottery building in Moncton, N.B., is pictured on Feb. 9, 2024.

The Atlantic Lottery Corporation has been fined $212,025 for failing to report on a suspicious transaction, according to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

The centre says Atlantic Lottery received the administrative penalty for non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The fine came following a compliance examination.

“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,” said Stéphane Sirard, acting director and CEO of FINTRAC, in a news release.

“We will take firm action, when it is required, to ensure that businesses do their part and fulfill these obligations.”

According to FINTRAC, Atlantic Lottery failed to:

• submit a suspicious transaction report when there were reasonable grounds to suspect a transaction or attempted transaction was related to the commission or attempted commission of a money laundering or terrorist activity financing offence
• develop and apply written compliance policies and procedures
• assess and document the risk of money laundering or terrorist activity financing offence

In a separate statement, Atlantic Lottery said the findings were “administrative in nature” and did not include allegations of money laundering, terrorist financing, criminal activity or wilful misconduct.

“While Atlantic Lottery has full confidence that its compliance program meets or exceeds its obligations, it is not in the best interest of Atlantic Canadians to divert funds to that would otherwise be returned to provincial shareholders by disputing this penalty through a legal appeal,” the statement reads.

“As such, Atlantic Lottery has paid the administrative penalty outlined by FINTRAC, concluding the examination.”