The former anti-money laundering director of the British Columbia Lottery Commission has testified before the Cullen Commission. The central topic was the lax attitude of local casino staff about suspicious transaction.
The Cullen Commission of Inquiry into Money Laundering in B.C. was launched after reports that illegal cash fueling the real estate, luxury car and gambling sectors in the province.
As for lax casino staff, they apparently chose “not to get” Canadian regulations on the practice per John Karlovcec speaking of the River Rock Casino. A series of saved email messages proved the point.
Apparently, former BCLC investigator, Ross Alderson, had informed Karlovcec and others that the River Rock wasn’t filing reports for transactions just under the $50,000 requirement.
“It’s too much of a coincidence and the players must have been informed.”
The Gaming Policy and Enforcement Branch of the province had raised concerns in 2012 about the plethora of $100 bills and the lack of reporting of suspicious transactions.
In an email addressing such concerns, Karlovcec noted that some people at the casino didn’t seem to understand the rules, and “Some, I’m going to suggest, choose not to get it.”
In 2011, the Cullen Commission had been advised that River Rock wasn’t doing its job of reporting. In this regard, Karlovcec said there was some challenges with a few of the people in surveillance.
“Some had been in the gaming industry for so long … they didn’t realize this was
federal legislation and that reporting had to be completed as to the regulations.”
Karlovcec felt that the problems had been addressed after he raised them with Great Canadian Gaming Corp. that operates the River Rock.
Suspicious transactions were reported to Fintrac, Canada’s financial transactions reporting center. The Lottery Corporation has implemented measures to stem the flow of dirty money since 2012. It had created an anti-money laundering unit made up of certified investigators and intelligence analysts.
Great Canadian Gaming has also defended the company’s efforts to limit money laundering, alleging that such accusations are unfounded.