FINTRAC Penalty: New Brunswick Lotteries Pays $399K

• FINTRAC announced on September 3, 2026, an administrative monetary penalty against the New Brunswick Lotteries and Gaming Corporation.
• The penalty, totaling $399,712.50, was imposed on July 24, 2026, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations.
• The penalized entity operates in the casino sector and is headquartered in Fredericton, New Brunswick.
• The New Brunswick Lotteries and Gaming Corporation has fully paid the administrative monetary penalty, and the case is now closed.
• This action underscores FINTRAC's commitment to enforcing Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime.

The obligations stipulated within the PCMLTFA are fundamental to this regime, serving to deter criminals and terrorists from exploiting the legitimate economy for their illicit gains.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced on September 3, 2026, that it had levied an administrative monetary penalty against the New Brunswick Lotteries and Gaming Corporation. This action followed a compliance examination conducted by the federal financial intelligence unit, targeting the Fredericton, New Brunswick-headquartered entity operating within the casino sector.

The penalty, totaling $399,712.50, was formally imposed on July 24, 2026. It stemmed from findings of non-compliance with specific provisions of Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its associated regulations. The New Brunswick Lotteries and Gaming Corporation was found to have committed an administrative violation under these statutes.

Following the imposition of the FINTRAC penalty, the New Brunswick Lotteries and Gaming Corporation has fully remitted the administrative monetary penalty. As a result of this payment, FINTRAC has officially closed the case related to this particular enforcement action.

FINTRAC's enforcement actions, such as this administrative monetary penalty casino operators face, underscore the critical role of Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime. This comprehensive framework is designed to safeguard the well-being of Canadians, ensure the security of Canadian businesses, and uphold the integrity of the nation's financial system against illicit activities.

The obligations stipulated within the PCMLTFA are fundamental to this regime, serving to deter criminals and terrorists from exploiting the legitimate economy for their illicit gains. Compliance ensures that FINTRAC receives the necessary reporting data, which is then analyzed to generate actionable financial intelligence. This intelligence is crucial for supporting law enforcement and national security investigations across Canada, making the FINTRAC enforcement casino sector a key component of national security.

FINTRAC has consistently affirmed its commitment to taking decisive action when reporting entities fail to meet their statutory obligations. The agency emphasizes that all businesses, including those in the gaming sector, must fulfill their responsibilities under the Act to contribute effectively to the broader AML/ATF efforts. This particular instance of PCMLTFA non-compliance New Brunswick serves as a clear example of this commitment.

This recent FINTRAC penalty New Brunswick Lotteries highlights the ongoing vigilance of Canada's financial intelligence unit in ensuring adherence to anti-money laundering and anti-terrorist financing regulations. The substantial nature of the $399,712.50 penalty against a prominent entity like the New Brunswick Lotteries and Gaming Corporation sends a clear message across the casino sector regarding the serious consequences of regulatory breaches.

The enforcement action reinforces that FINTRAC is prepared to utilize its powers to impose significant administrative monetary penalties when non-compliance is identified, particularly concerning Part 1 of the PCMLTFA. For entities operating in the gaming industry, this serves as a potent reminder of the imperative to maintain robust internal controls and reporting mechanisms to meet all statutory requirements under Canada AML gaming enforcement directives. The closure of the case after payment also indicates the finality of such enforcement actions once penalties are settled.

This penalty underscores FINTRAC's continued vigilance in enforcing AML/ATF compliance within the casino sector. Lawyers and compliance officers advising gaming entities should review their clients' internal controls and reporting mechanisms to mitigate the risk of similar substantial administrative monetary penalties under the PCMLTFA.

Source: Original reporting via FINTRAC news release