The Australian Transaction Reports and Analysis Centre (AUSTRAC) has started an investigation into two gambling operators – bet365 and Sportsbet – following allegations that they have failed to comply with the country’s anti-money laundering legislation.
On November 2nd, the country’s financial crime gambling regulatory body announced that it had reasons to suspect that the two aforementioned companies had or were still in violation of multiple sections of the Australian counter-terrorism financing and anti-money laundering laws. The AUSTRAC revealed that it will appoint independent auditors to investigate the suspected lack of compliance.
As the Australian financial crime gambling regulator shared, both Hillside (Australia New Media) Pty Ltd, which currently owns bet365, and Sportsbet, received notices of the aforementioned actions. The watchdog shared that the probes into the services offered by the two operators followed an extensive supervisory campaign as part of which corporate bookmakers have been assessed.
On Thursday, Nicole Rose, the chief executive officer of the AUSTRAC, issued a statement confirming that two of the largest companies operating in the corporate bookmaking sector are being under investigation for alleged breach of AML laws. Ms Rose highlighted that AUSTRAC would not hesitate to take action in cases where suspected non-compliance was identified in order to make sure businesses were being exploited, on one hand, and to protect the local community from potential harm, on the other hand.
Australian Commercial Betting Operators Required to Monitor Punters and Customer Transactions
Under the provisions of the existing laws, betting operators are required to monitor their customers and their financial transactions, so that they identify, reduce and manage the risk that they might be engaging in terrorism financing and money laundering. Gambling operators are also expected to participate in regular reporting of any identified risks.
Australian laws force gambling companies’ boards and senior management to oversee and regularly review the aforementioned compliance processes regarding terrorism financing and anti-money laundering programmes, and are held ultimately liable for any decisions made about engaging in business relationships linked to higher risk.
Currently, bet365 is one of the largest online British gambling companies, with offices in Gibraltar, Malta, Australia, and Bulgaria. This is not the first time when the operations of the British gambling giant are being investigated. Back in 2016, Australia’s Federal Court ordered Hillside, which is the parent company of bet365, and its UK counterpart to pay monetary fines estimated at a total of AU$2.75 million for offering free bets that were considered deceptive and misleading.
The new probes in bet365 and Sportsbet follow a September announcement that the Australian Transaction Reports and Analysis Centre was investigating the operations of another betting giant, Entain, which owns Ladbrokes and a range of other gambling brands.
The lack of compliance with counter-terrorism financing and money laundering rules can result in multimillion-dollar penalties. The Australian gambling industry has come under increased regulatory scrutiny lately, with the country’s Federal Government launching new customer protection rules on November 2nd, under which online gambling companies would be required to implement new taglines in their responsible gambling messages to consumers in order to protect punters from the potential negative effects of gambling.
- Author
Daniel Williams
