B.C. Judge Upholds Casino Restrictions in Money Laundering Case
A British Columbia Supreme Court judge has dismissed a legal challenge from a casino patron who claimed he was unfairly stigmatized as a money launderer by the B.C. Lottery Corporation. The ruling reinforces the corporation's authority to impose restrictions on gamblers using large amounts of cash at provincial casinos.
Legal Challenge Against BCLC Restrictions
Ali Ghotaymi sought to have the court overturn what he called "sourced cash conditions" placed on his gambling activities at the River Rock Casino in Richmond. The conditions required him to provide proof that his gambling cash had been withdrawn from a legitimate bank, a measure Ghotaymi argued unfairly labeled him as a potential money launderer.
According to Justice Matthew Kirchner's decision, Ghotaymi objected to the restrictions on multiple grounds. He claimed they stigmatized him without proper justification and were implemented without prior notice, creating what he described as an unreasonable burden on his gambling activities.
Background of Anti-Money Laundering Measures
The B.C. Lottery Corporation's restrictions stem from a comprehensive 2022 public inquiry into money laundering in British Columbia. The inquiry documented that casinos had been a significant channel for laundering illicit funds, particularly before 2015.
The investigation revealed staggering statistics: In 2014 alone, B.C. casinos accepted nearly $1.2 billion in cash transactions of $10,000 or more. This included upwards of five transactions daily exceeding $100,000, highlighting the scale of potential money laundering activity.
Current Casino Regulations and Procedures
To address these concerns, BCLC implemented a policy requiring patrons with cash buy-ins exceeding $10,000 to demonstrate that the funds originated from accredited financial institutions. This verification process ensures the money has undergone banks' rigorous anti-money laundering procedures, reducing the likelihood of fraudulent transactions.
Justice Kirchner noted in his judgment that this approach serves multiple purposes:
- Compliance with the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act
- Assistance to police investigations into potential proceeds of crime
- Protection of casino integrity and public confidence in gambling institutions
Specifics of Ghotaymi's Case
Despite the $10,000 threshold for automatic restrictions, BCLC flagged Ghotaymi's transactions in July 2021 even though his individual buy-ins never reached that amount. The corporation noted that Ghotaymi had made 29 "large cash" transactions over the preceding two and a half years, with 11 of those transactions being exactly $9,000.
The pattern raised concerns about potential threshold avoidance or structuring, where individuals deliberately keep transactions below reporting thresholds to avoid scrutiny. In two instances, Ghotaymi made $9,000 buy-ins at different casinos within less than two hours.
Casino officials also considered Ghotaymi's employment as a Canada Post employee, noting that such a position typically wouldn't involve handling large amounts of cash on a regular basis.
Patron's Defense and Judicial Response
Ghotaymi offered an alternative explanation for his gambling patterns. He claimed his buy-ins came from previous casino winnings and that he used $9,000 amounts because nine was his lucky number.
However, Justice Kirchner determined that BCLC acted reasonably in imposing the restrictions. The judge found that the corporation's measures were justified given the documented history of money laundering in B.C. casinos and the need to comply with federal anti-money laundering legislation.
The ruling establishes that BCLC can impose conditions on transactions below the $10,000 threshold when patterns suggest potential threshold avoidance, even without concrete proof of money laundering. This gives the corporation broader discretion to address suspicious activity patterns that might otherwise evade scrutiny.
This decision comes as British Columbia continues to strengthen its regulatory framework for casinos. The province recently established a dedicated regulator to oversee casino operations and money laundering prevention, implementing recommendations from the 2022 inquiry that had been pending for seven years.
