AUSTRAC has accepted an Enforceable Undertaking from Sportsbet Pty Ltd (Sportsbet) to uplift its compliance with Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws.
After an extensive supervisory campaign assessing entities within the corporate bookmaker sector, AUSTRAC ordered Sportsbet to appoint an external auditor to examine its compliance with the AML/CTF regime. Following careful consideration of the auditor's findings, and Sportsbet's willingness to cooperate and proactively work to meet its obligations, AUSTRAC has determined accepting an Enforceable Undertaking from Sportsbet is the most appropriate regulatory response.
The enforceable undertaking binds Sportsbet to an ongoing remedial action plan to improve its AML/CTF program, which AUSTRAC will monitor to ensure it is undertaken within agreed timeframes. As part of the undertaking, Sportsbet is also required to provide reports to AUSTRAC from an auditor who will continually monitor the progress of Sportsbet's uplift.
AUSTRAC CEO Brendan Thomas said that the enforceable undertaking is designed to help prevent Sportsbet becoming a place criminals can funnel their illicit funds through.
"Corporate bookmakers must have robust systems in place to ensure they comply with their AML/CTF obligations," Mr Thomas said.
"Sportsbet's undertaking binds it to a programme of work. This will help ensure Sportsbet manages and mitigates the risks associated with money laundering and terrorism financing.
"We will be monitoring Sportsbet throughout this process to ensure it meets these obligations, and there will be consequences if it does not.
"Betting agencies, like all regulated entities, have a significant role to play in combating financial crime. This undertaking will ensure that Sportsbet commits sufficient resources to adequately implement its remediation program promptly, or risk further enforcement action," he said.
Details of the Enforceable Undertaking are available on the AUSTRAC website.
AUSTRAC's regulatory approach
AUSTRAC uses a range of regulatory tools and powers to ensure compliance. Interactions are tailored based on the level of risk posed by the entities we regulate and their circumstances, and range from education and collaboration, through to regulatory interventions and enforcement.
AUSTRAC enforcement powers include:
- issuing infringement notices
- issuing remedial directions, which require a reporting entity to take specified action to ensure compliance
- accepting enforceable undertakings detailing the specific actions a reporting entity will commence or cease in order to comply with the AML/CTF Act
- seeking injunctions and/or civil penalty orders in the Federal Court.
AUSTRAC does not provide public commentary on individual reporting entities' compliance.
Details of the consequences of not complying are available on the AUSTRAC website.
