AUSTRAC (Australian Transaction Reports and Analysis Centre) has announced that it has commenced an enforcement investigation into Sportsbet and Bet365.
The Australian financial crime watchdog suspects that Sportsbet and Bet365 may have violated anti-money laundering laws.
External auditors will be authorised to assess Sportsbet’s and Bet365’s compliance with the AML/CTF Act and Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules). It follows the recent launch of an investigation into Entain.
The external auditors must report to AUSTRAC within 180 days of being appointed and will examine Sportsbet’s and Bet365’s compliance with:
Adopting and maintaining an AML/CTF program that has risk-based systems and controls in place to effectively identify, mitigate and manage money laundering and terrorism financing (ML/TF) risks.
Undertaking an appropriate ML/TF Risk Assessment that considers the risk posed by their customer types, the types of designated services they provide and the methods by which they deliver those designated services.
Ensuring Sportsbet and Bet365 have a framework through which their Boards and senior management have ongoing oversight of their Part A Programs; and
Appropriately monitoring their customers with a view to identifying, mitigating and managing the risk they may reasonably face that the provision of designated services may involve or facilitate money laundering or the financing of terrorism.
AUSTRAC chief executive Nicole Rose said that AUSTRAC will take action if it finds systemic deficiencies. She said: “Sportsbet and Bet365 are amongst the largest operators in the corporate bookmaking sector. AUSTRAC is putting the whole industry on notice to lift their game.
Ultimately, enforcing non-compliance is about protecting the community. Money laundering feeds organised crime and all the harm that comes with it. We need businesses at the front line to fully comply with the AML/CTF Act – to understand and mitigate their risks and report suspected crimes.”
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