Dr Jamie Ferrill, Discipline Lead of Financial Crime Studies and Senior Lecturer at Charles Sturt University, spoke with The Guardian’s Henry Belot on the potential impact an ongoing investigation into money laundering by the Australian Transaction Reports and Analysis Centre (AUSTRAC) will have on Australia’s gambling industry.
As previously reported by Casino Guardian, the said inquiry was launched in November 2022, and it concerns major operators like bet365 and Sportsbet. Should the findings of this probe reveal that anti-money laundering (AML) laws have indeed been breached, the watchdog would not show hesitancy in taking action, according to AUSTRAC CEO Nicole Rose. The year 2022 was also when AUSTRAC signed a Memorandum of Understanding (MOU) with the Victorian Gambling and Casino Control Commission (VGCCC) with the goal of tackling illicit financial activity, further showcasing AUSTRAC’s commitment to addressing such issues.
Ferrill stressed the significance of money laundering as a prominent issue that is present in Australia’s gambling sphere and said that, as the investigation will likely lead to regulatory measures, industry players should prepare accordingly. She also told The Guardian that the probe will highlight any potential “loopholes” and other issues that could be present in the AML and Counter-Terrorism Financing (CTF) programs of gambling businesses.
Criminals See Australia’s Gambling Industry as an Appealing Option When it Comes to Money Laundering
Ferrill claimed that the investigation could lead to companies needing to incur the costs of improving their AML programs and tackling illegal activity. She continued, saying that the results could ultimately “serve as a wake-up call” for Australia’s online gambling sector.
Ferrill believes the gambling industry is appealing to those seeking to “commingle” money obtained through illegal means due to the sheer amount of legitimate money associated with online gambling. This claim is further supported by the fact that multiple online and retail gambling businesses in Australia have, throughout the years, got in trouble with Australian authorities over such issues. In 2023, Crown Resorts had to pay a staggering AU$450 million fine imposed by the Federal Court of Australia for not complying with the jurisdiction’s Anti-Money Laundering and Counter-Terrorism Financial Act 2006. The same year also saw AUSTRAC helping in cracking down on a substantial money laundering syndicate that sought to utilise casinos to launder around AU$600,000. In addition, several years prior, Tabcorp was subject to a record AU$45 million fine for, once again, neglecting to properly address money laundering.
Apart from talking to Ferrill, The Guardian also quoted the Australian National University’s Anton Moiseienko, a senior lecturer whose expertise is in money laundering and other areas of law. Specifically, a focus was placed on his research into remote gambling and how gambling is utilised for the purposes of laundering money. According to Moiseienko, some industry players have neglected AML measures to the point where even money laundering attempts that were not “sophisticated” have been successful. He also claimed that iGaming serves as a way for certain criminals to wager illegally obtained funds and thus turn them into legitimate money.
- Author
Daniel Williams
