AUSTRAC has finalised its enforceable undertaking with Sportsbet Pty Ltd (Sportsbet) after the company addressed serious deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) controls.
AUSTRAC CEO Brendan Thomas said the outcome reinforces AUSTRAC’s expectation that reporting entities take immediate and sustained action to meet their legal obligations.
“When AUSTRAC identifies systemic weaknesses in a reporting entity’s AML/CTF controls, we will take enforcement action to ensure those issues are addressed,” he said.
“Sportsbet was required to undertake significant remediation to uplift its systems, controls and governance. AUSTRAC is now satisfied those requirements have been met.
“Completion of an enforceable undertaking does not lessen our expectations. Businesses like Sportsbet operating in higher-risk sectors must maintain robust, risk-based systems to prevent criminal exploitation.”
The undertaking, accepted in May 2024, was offered by Sportsbet after AUSTRAC raised concerns about Sportsbet’s compliance with its AML/CTF obligations, including its approach to risk assessment, customer monitoring and suspicious matter reporting.
These issues were identified as part of AUSTRAC’s review of the corporate bookmaker sector.
The undertaking required Sportsbet to uplift five key areas of its AML/CTF policies and processes. Independent assurance, which was completed by an external auditor and provided to AUSTRAC, confirms that Sportsbet has implemented and operationalised all required remediation.
AUSTRAC continues to monitor businesses across the gambling sector closely, noting its exposure to money laundering risks, particularly in online environments where transactions can occur rapidly and with limited face-to-face interaction.
“The online gambling sector faces heightened threats from identity and payment fraud and it’s important that the whole sector continues to work to mitigate these threats,” Mr Thomas said.
“Strong AML compliance is the best way to fight financial crime – let’s work together to stamp out criminal abuse of the online gambling sector.”
