Discrepancy regarding a rule on how to report large transactions inside BC casinos is putting the BCLC ad odds with the Financial Transactions and Reports Analysis Centre of Canada (Fintrac).
An audit conducted by BC’s Gaming Policy Enforcement Branch determined that BCLC underreported large transactions to Fintrac for three years. However, the provincial gaming regulator argues that they sent a request to Fintrac in 2011 to clarify how to report multiple large transactions over a 24 hour period.
According to the Gaming Policy Enforcement, that request was never answered which has allowed the cycle to repeat itself. The BCLC continues to disagree with Fintrac on how multiple transactions should be reported, but does report large single transactions regularly.
Fintrac monitors transactions in casinos, banks, and even currency exchanges that exceed $10,000 to validate the expenditures are not laundering illicit money or financing terrorism. Organizations are required to file Fintrac’s “Large Cash Transaction Report,” as well as a “Suspicious Transaction Report” if there are any suspicions the transactions violate federal law in Canada.
But Fintrac also requires more extensive monitoring from Canadian casinos. As part of Fintrac’s guidelines, gaming regulators must report smaller transactions made by single players over a 24 hour period that collectively exceed $10,000. The BCLC agrees with monitoring single $10,000 plus transactions, but wants more information from Fintrac before agreeing to submit smaller bets.
The BCLC disagreed with Fintrac on a number of issues in the past, most notably in 2011. Fintrac fined the BCLC $700,000 for errors found on over 1,000 reports submitted on casino transactions made throughout the year. However, the provincial regulator challenged the authenticity of the fine, and the case remains before the courts to this day.