Sportsbet to enhance anti-money laundering compliance under AUSTRAC agreement

Jenny Ortiz May 31, 2024

SiGMA news

Sportsbet to enhance anti-money laundering compliance under AUSTRAC agreement

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has accepted an Enforceable Undertaking from Sportsbet Pty Ltd (Sportsbet) to improve its adherence to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. This decision follows an extensive supervisory campaign evaluating entities within the corporate bookmaker sector.

AUSTRAC had previously mandated Sportsbet to appoint an external auditor to scrutinise its compliance with AML/CTF regulations. After reviewing the auditor’s findings, AUSTRAC decided that an Enforceable Undertaking was the most suitable regulatory response, acknowledging Sportsbet’s cooperation and proactive stance in addressing compliance issues.

Remedial action plan

The enforceable undertaking commits Sportsbet to an ongoing remedial action plan aimed at enhancing its AML/CTF program. In a press release, AUSTRAC shared that it will oversee this process to ensure timely completion. Additionally, Sportsbet must provide regular progress reports from an auditor monitoring its compliance efforts.

AUSTRAC CEO Brendan Thomas emphasised the importance of robust systems for corporate bookmakers to prevent misuse by criminals. “Corporate bookmakers must have robust systems in place to ensure they comply with their AML/CTF obligations,” Thomas said in a statement.

“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,” he added.

Thomas also highlighted AUSTRAC’s ongoing oversight: “We will be monitoring Sportsbet throughout this process to ensure it meets these obligations, and there will be consequences if it does not.” He reiterated the significance of compliance in combating financial crime: “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.”

AUSTRAC’s regulatory approach

AUSTRAC employs a variety of regulatory tools to ensure compliance, ranging from education and collaboration to enforcement actions. Its enforcement powers include issuing infringement notices, remedial directions, accepting enforceable undertakings, and seeking legal action through the Federal Court.

Consequences for non-compliance

AUSTRAC has made clear that betting agencies and other regulated entities play a crucial role in combating financial crime. The enforceable undertaking with Sportsbet underscores the agency’s commitment to ensuring entities allocate adequate resources for compliance or face further enforcement actions.