Bet365 and Flutter Entertainment face Australian investigation over potential AML failings
AUSTRAC launches investigation into pair as CEO says move puts the entire industry on notice to improve
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has launched investigations into bet365 and Sportsbet over suspected failings regarding anti-money laundering and terrorist financing.
The regulator has appointed external auditors to assess the compliance of bet365 and the Flutter Entertainment-owned Sportsbet.
In notices served to both operators, AUSTRAC noted it had “reasonable grounds to suspect” the firms had “contravened and/or [are] contravening” regulations.
The investigations relate to concerns over the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (AML/CTF Rules).
The investigations will see auditors explore whether the operators have adopted and maintained a system that has risk-based systems and controls in place to mitigate risks.
Bet365 and Sportsbet will also be investigated in regards to having monitoring framework in place against customers, as well proper risk assessment process relating to business operations.
The auditors’ examinations will be paid for by both bet365 and Sportsbet, with the extent of the examination to be determined by AUSTRAC.
The investigations into bet365 and Sportsbet follow a similar case against Entain which was launched in September relating to potential historical failings.
Nicole Rose, AUSTRAC CEO, said the body had put the “whole industry on notice to lift their game”.
Rose said: “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.
“AUSTRAC will not hesitate to take action where suspected non-compliance is identified, to protect businesses from being exploited and protect the Australian community from harm,” she added.
A bet365 spokesperson told EGR: “Bet365 has robust policies and procedures in place to minimise risks associated with money-laundering and counter-terrorism financing. The company is working co-operatively with AUSTRAC.”
Additionally, a Sportsbet spokesperson commented: “Sportsbet takes its responsibilities under the Anti-Money Laundering and Counter-Terrorism Financing Act and Rules very seriously.
“AUSTRAC’s notice requires us to appoint an external auditor to look into our compliance with the act and rules. The appointment of an external auditor is not an enforcement investigation.
“It comes following a periodic compliance assessment of Sportsbet for the period of 2016 to 2020. Since then, we have enhanced our program and practices, including conducting an independent review. Sportsbet continues to invest heavily in AML/CTF compliance and in our people, processes and systems,” the spokesperson added.