The Australian Transaction Reports and Analysis Centre (Austrac) has initiated an audit of two major operators, Bet365 and Flutter-owned SportsBet, to investigate potential breaches of money laundering regulations. Austrac, the government body responsible for combating money laundering, aims to determine whether the operators have complied with anti-money laundering and counter-terrorism financing (AML/CTF) rules. If found non-compliant, the operators may face further regulatory action, including court-ordered fines. The audit is part of Austrac’s comprehensive supervisory campaign within the corporate bookmaker sector and follows an ongoing investigation into Entain.
Areas of Focus in the Audit:
The auditors will assess the operators’ compliance in four key areas of money laundering laws. Firstly, they will examine whether Bet365 and SportsBet have implemented an AML/CTF program with risk-based systems and controls to effectively identify, mitigate, and manage money laundering and terrorism financing risks. Secondly, they will evaluate the operators’ money laundering risk assessments to ensure proper procedures were conducted. Additionally, the auditors will review the boards’ oversight of anti-money laundering efforts, assessing whether there is ongoing monitoring and supervision. Lastly, the audit will assess whether the businesses have appropriately monitored customers to identify and manage any potential risks related to money laundering or terrorism financing.
Reporting and Potential Regulatory Action:
The auditors are required to provide their findings within 180 days, and the results may lead to further regulatory measures by Austrac. Bet365 and SportsBet will bear the costs associated with the audit. Austrac emphasizes that the audit outcomes will help the operators enhance their compliance with AML/CTF obligations and determine if additional regulatory action is necessary. This process serves as a warning to the entire industry, as Austrac’s CEO, Nicole Rose, emphasizes the importance of compliance and the impact of money laundering on the community.
Implications for the Industry:
Austrac’s decision to investigate two prominent operators in the corporate bookmaking sector serves as a wake-up call for the entire industry. By targeting Bet365 and SportsBet, Austrac aims to ensure that all businesses operating in this sector prioritize compliance with AML/CTF regulations. Money laundering fuels organized crime, leading to significant harm within communities. Austrac urges businesses to understand and mitigate their risks, report suspected crimes, and fully comply with the AML/CTF Act. The regulatory body is prepared to take action against any identified non-compliance to protect both businesses from exploitation and the Australian community from harm.
Austrac’s audit of Bet365 and SportsBet reflects the government’s commitment to combating money laundering and terrorism financing in the gambling sector. The investigation into potential breaches of AML/CTF regulations serves as a strong warning to the industry as a whole, emphasizing the need for strict compliance. By holding major operators accountable, Austrac aims to safeguard the community from the detrimental effects of money laundering and organized crime. The audit’s results will guide Bet365 and SportsBet in enhancing their compliance efforts and may lead to further regulatory actions. Ultimately, the goal is to ensure a transparent and secure gambling environment that protects both operators and consumers.