FINTRAC Administrative Penalty for a 2012 Review - Loto-Québec sets the record straight

01/12/2020 12:52

MONTRÉAL, Dec. 1, 2020 /CNW Telbec/ - Loto-Québec wishes to set the record straight following the publication of an article entitled "Le Casino a caché des informations au fédéral" in this morning's Le Journal de Montréal and Le Journal de Québec.

Penalty dating back to a 2012 review

Following a compliance review conducted in 2012 in which Loto-Québec was involved, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed an administrative monetary penalty on Loto-Québec for certain administrative deficiencies:

Failure to document the prescribed review of its compliance program;
Failure to report a transaction that FINTRAC deemed suspicious; and
Failure to properly report the occupation of a client in the case of casino disbursements reports.

The subject of a legal challenge for several years

Loto-Québec availed itself of its right to challenge the penalty in court, particularly with respect to its amount. As is sometimes the case, the court ruled, in the normal course of the legal proceedings and for their duration, that Loto-Québec's name should remain confidential.

FINTRAC reviewed the penalty, advising Loto-Québec in March 2020 that it amounted to $147,015. Loto-Québec decided to pay the penalty, which dates back to more than 8 years ago, with a view to maintaining a strong working relationship with FINTRAC in the fight against money laundering.

Subsequent 2016 review

In a subsequent review in 2016, FINTRAC found no issues and determined that Loto-Québec had moved to address these specific deficiencies.

Loto-Québec remains committed to improving its procedures and will cooperate with the government-requested independent audit.

To read FINTRAC's news release on the aforementioned administrative penalty: https://www.fintrac-canafe.gc.ca/new-neuf/nr/2020-11-06-eng