The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced that it has ordered online sports betting operator bet365 to reinforce its anti-money laundering controls. This regulatory action comes shortly after the AUSTRAC identified what it called “serious gaps” in how the bookmaker manages risks and reports suspicious activity.
Bet365 Ordered to Bolster Its AML Processes & Reporting
Per the AUSTRAC’s announcement, bet365 has entered into a legally binding enforceable undertaking to improve its AML operations. Under this undertaking, the company will be required to bolster its risk assessment and controls with better methodology and processes. In addition to that, the operator must also make improvements to how it reports suspicious transactions to the relevant authorities.
As mentioned, this comes shortly after the AUSTRAC probed bet365’s AML controls and found them insufficient. For reference, the AUSTRAC’s investigation was triggered by an independent audit of the bookmaker’s business.
If bet365 fails to comply with the enforceable undertaking, it could face civil penalties.
The Gaming Industry Is Associated with AML Risks
Brendan Thomas, chief executive officer of the AUSTRAC, commented on the matter, saying that reliable AML assessments and diligent reporting are a must in order to shield Australia’s financial system from fraud.
Thomas emphasized that the gambling industry is associated with increased money laundering risks. Because of that, the AUSTRAC has been very focused on mitigating the risks to the economy from money laundering via the gaming sector.
Thomas elaborated that the gambling industry processes large sums of money at high speed, oftentimes using anonymous digital channels. He noted that criminal enterprises know this and have been actively looking to exploit it.
This means businesses need to continuously improve their systems to assess risks and monitor for suspicious activity because when controls fall behind, the consequences extend beyond a single company.
Brendan Thomas, CEO, AUSTRAC
AUSTRAC Expects All Companies to Prevent Fraud
In its announcement, the AUSTRAC said that its action against bet365 highlights its expectations for all reporting businesses. For reference, the regulatory body is currently embroiled in a legal fight with Entain. The AUSTRAC’s continued efforts to protect the Australian economy were further highlighted by earlier action against Sportsbet.
The AUSTRAC has also been eyeing the Star Entertainment Group situation and previously initiated legal proceedings against the embattled casino and hospitality business.