The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced on March 7th that its probe into bet365’s compliance with Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) is now underway.
AML/CTF regulations concern the issue of criminals using companies for the purposes of concealing money obtained through illegitimate means or for financing terrorist organisations. Sportsbooks and gambling companies, in general, are particularly susceptible to this form of exploitation, and combating the problem involves the utilisation of Know Your Customer (KYS) systems. They serve to carefully audit client activity when it comes to their transactions. When potential issues are detected, companies are mandated to take actions that tackle the problem and to issue reports to the relevant regulatory entities.
In 2022, following suspicions that Hillside (Australia New Media) Pty Limited (bet365) had committed breaches of the country’s AML/CTF regulations, AUSTRAC approved three bet365-selected independent auditors whose duties involved examining bet365’s compliance with AML/CTF laws and the creation of a report outlining any potential issues. In accordance with these requirements, the said report has been completed and provided to AUSTRAC.
Brendan Thomas, AUSTRAC’s current chief executive officer (CEO), issued a statement in which he claimed that it is crucial for corporate bookmakers to “manage and mitigate” money laundering and terrorism financing risks through the usage of robust systems. He continued, saying that without such systems, companies run the risk of being utilised by individuals seeking to commit criminal acts. In addition, if necessary, AUSTRAC is fully prepared to address non-compliance when detected.
AUSTRAC’s Continued Fight Against Money Laundering and Terrorism Financing
Bet365 is one of several gambling giants to be subject to AML/CTF audits as a result of suspicions raised in 2022, with Ladbrokes owner Entain, as well as Sportsbet, having been placed in a similar situation. In the 2022 announcement of Bet254 and Sportsbet’s probe, Nicole Rose, who served as AUSTRAC’s CEO from 2017 until 2022, emphasised that money laundering serves to “feed organised crime” and facilitate the harm that is associated with criminal activity.
In another effort to further tackle problems of this nature, given their severity, AUSTRAC also introduced a new rule last October that mandates that bettors who wish to place bets at an online sportsbook must first undergo identity verification, also referred to as “pre-verification” in this context. Gambling companies have until September 28th, 2024, to implement pre-verification in their systems.
Land-based gambling companies are also required to adhere to stringent rules when it comes to the prevention of money laundering and terrorism financing. As previously reported by Casino Guardian, Australia’s Crown Resorts was forced to pay an AU$450 million fine last year for breaching AML/CTF regulations. The case specifically concerned the Crown Melbourne and Crown Perth casino establishments, as neither had implemented a transaction monitoring programme that could sufficiently monitor clients and detect suspicious activity when committed.
- Author
Daniel Williams
