VANCOUVER – The British Columbia Lottery Corp. says it was wrongly penalized more than $1 million for anti-money laundering and terrorist financing violations earlier this year by a federal watchdog.

The lottery corporation says in a notice of appeal filed last week in Federal Court that the Financial Transactions and Reports Analysis Centre of Canada — known as FINTRAC — wrongfully penalized the company for three alleged violations.

It says it wasn’t notified it was under examination, and was instead “ambushed” by the anti-money laundering regulator without a chance “to correct FINTRAC’s misunderstandings and misapprehensions” about the casino and gaming industry.

The appeal says FINTRAC zeroed in on one unnamed casino patron who had been identified as the highest-volume slot machine p

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