Australia’s financial crimes watchdog, AUSTRAC, has outlined its regulatory priorities for 2024, putting a spotlight once again on the gambling industry. Following a recent settlement with Crown Resorts, where the casino giant agreed to pay AU$450 million for historical anti-money laundering (AML) failures, AUSTRAC’s agenda emphasizes the need for businesses, especially in the banking, gambling, and remittance sectors, to understand and manage money laundering and terrorism financing risks.
AUSTRAC’s 2024 Priorities:
AUSTRAC’s Acting CEO, Peter Soros, unveiled the regulatory priorities for 2024, emphasizing the watchdog’s commitment to working with businesses to enhance awareness and vigilance against financial abuse and criminal exploitation. The identified high-risk sectors include banking, gambling, remittance, Digital Currency Exchanges (DCEs), payment platforms, bullion, and non-bank lenders and financiers.
Ongoing Focus on Gambling Industry:
The gambling industry, already under the microscope due to recent settlements with Crown Resorts and pending actions against Star Entertainment Group and SkyCity Adelaide, remains a central focus for AUSTRAC. The regulator aims to ensure that businesses in this sector not only comply with AML regulations but also actively understand, mitigate, and manage the associated risks.
Board and Senior Management Oversight:
AUSTRAC’s attention extends beyond specific sectors to encompass board and senior management oversight. The regulator will closely examine corporate culture and risk management practices, emphasizing the importance of effective transaction monitoring and the management of outsourcing arrangements. This signals a broader commitment to fostering a culture of compliance and risk mitigation at all levels of organizations.
Potential Enforcement Actions:
AUSTRAC’s announcement highlights its readiness to intervene promptly in the face of emerging issues or serious non-compliance. Increased engagement, assessments, notifications, and enforcement actions are on the table for businesses failing to meet regulatory standards. This stern approach underscores the watchdog’s determination to safeguard Australia’s communities and financial systems from potential harm.
AUSTRAC’s 2024 regulatory priorities underscore the watchdog’s unwavering commitment to combat financial crimes, with a particular focus on sectors prone to money laundering and terrorism financing risks. As the gambling industry remains under intense scrutiny, businesses are urged to fortify their AML frameworks and cultivate a culture of compliance. The broader emphasis on board oversight and risk management practices signals a comprehensive approach to ensuring financial integrity across industries. As AUSTRAC intensifies its efforts, businesses must be proactive in addressing vulnerabilities and staying abreast of evolving regulatory expectations.