Australia watchdog targets The Ville, Mindil Beach casinos in compliance audits
Australia’s financial crime watchdog, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has ordered two casino resorts—The Ville Resort-Casino in Queensland and Mindil Beach Casino Resort in the Northern Territory—to undergo compliance audits of their anti-money laundering and counter-terrorism financing (AML/CTF) programmes.
AUSTRAC stated the decision follows the identification of “potential gaps and deficiencies in AML/CTF controls, risk and oversight” at the two properties. Both casinos have been instructed to appoint external auditors to assess how well they are managing money laundering and terrorism financing risks.
The Ville Resort-Casino, located in Townsville, operates over 370 gaming machines and 20 gaming tables, along with a sports betting offering. Mindil Beach Casino Resort in Darwin runs over 600 pokies and gaming tables in both mass market and VIP areas, as well as NT Keno.
Risk of criminal exploitation
AUSTRAC CEO Brendan Thomas explained that although these casinos are smaller than major operators like Crown Resorts and The Star, they still face serious risks.
“Although they may be smaller than entities such as Crown Resorts and The Star, like all gambling venues, The Ville and Mindil Beach face heightened risk of exploitation by criminals,” he said.
He highlighted that the nature of the gaming operations—such as slot machines and gaming tables—brings an elevated risk of money laundering.
“AUSTRAC is serious about driving illicit money out of the gambling industry in Australia and making sure businesses that facilitate gambling have strong money laundering controls,” Thomas added.
Part of broader crackdown
Thomas noted that this move follows previous enforcement actions against larger casino groups and online bookmakers. “This action follows major actions we have taken against other casinos – Crown Resorts, SkyCity and The Star – and online bookmakers Entain, Sportsbet and Bet 365,” he said.
He also delivered a warning to industry leaders: “My message to boards and CEOs of gambling businesses, including pubs and clubs with gaming machines, is to make sure you comply with Australian money laundering laws and take your responsibility to tackle money laundering seriously; we are watching and we will take further action. Money laundering harms our economy and it allows criminals to profit from some of the most awful crimes – we need to stamp it out.”
What the audits will cover
According to AUSTRAC, the audits will focus on how effective the two casinos have been in the following areas:
- Maintaining a compliant AML/CTF programme that identifies, mitigates and manages risks
- Carrying out a proper ML/TF risk assessment, considering business model, customer base, and service delivery methods
- Establishing a governance framework that allows boards and senior managers to oversee AML/CTF efforts
- Monitoring customers to detect and manage money laundering and terrorism financing risks
“Businesses should not be making it easy for criminals to use them for illicit purposes,” said Thomas. “If you’re properly managing a compliant AML/CTF programme, it is going to deter criminal behaviour and help us drive criminal activity out of your industry.”
The scope of the audits will be set by AUSTRAC and the costs will be borne by the casinos. Once complete, the regulator will determine if further regulatory action is necessary based on the findings.
