The inquiry has also already heard that Alderson had told Friesen that staff at the Richmond, B.C., casino could have warned their high rollers to make transactions just below the facility’s reporting threshold of $50,000.“We believe it is a cynical attempt by the site to avoid reporting buy-ins as suspicious,” Alderson stated in an email to his bosses, commission lawyer Allison Latimer said on Thursday.Latimer questioned Friesen’s former assistant of investigations, John Karlovcec, about a similar emailed comment from Alderson, in which he said he had continued to raise the $50,000 threshold problem, and he worried this was a compliance concern for reporting to Fintrac, Canada’s anti-money laundering agency.
“I know a $50,000 buy-in limit was agreed upon,” Alderson’s email said, according to Latimer. “The standard response has always been it is the service provider staff resourcing issue in surveillance, and that B.C. Lottery Corp. management have agreed to the thresholds.”Latimer asked Karlovcec if Lottery Corp. managers had agreed to allow the River Rock to set a $50,000 reporting limit.“No. Certainly not from myself, or Mr. Friesen,” Karlovcec answered. “For whatever reason, at the River Rock, they had it in their mind (that) unless the buy-in amount was $50,000 or over, they weren’t required to report that.”
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Under questioning from Latimer, Karlovcec said that he raised the issue with Great Canadian Gaming’s management, and that he doesn’t believe River Rock employees were trying to avoid Fintrac reporting laws.Rather, Karlovcec said, it was a small number of River Rock surveillance staff who “didn’t recognize this was federal legislation and reporting had to be completed as per the regulations.”Latimer also probed him on an allegation made by his former subordinate, Stone Lee.Lee has testified that one of his bosses told him that Karlovcec wanted Lee to falsify a Fintrac suspicious-transaction report by making up an occupation for a particular high roller.Karlovcec said he never asked a subordinate to do that.
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