Tabcorp faces $17m anti-money laundering legal battle
Australian operator accused by government agency of failing to comply with the country's AML and counter-terrorism legislation
Tabcorp is facing a fine of AUS$17m after an Australian government agency today accused it of “extensive, significant and systemic non-compliance” with the country’s anti-money laundering and counter-terrorism laws.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has begun civil proceedings with the Federal Court against three of the group’s companies which could see the Melbourne-based operator face fines of up to AUS$17m (£8.1m).
The country’s anti-money laundering and counter-terrorism financing regulator said in a statement the action was the result of a comprehensive assessment of the operator’s compliance with current legislation and claimed it had taken no steps to improve standards.
“Non-compliance of this nature provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system,” AUSTRAC said.
“AUSTRAC works to keep dirty money out of our financial system, which helps to protect the Australian community from serious and organised crime,” the statement continued.
According to the Sydney Morning Herald, the legal proceedings stem from Tabcorp failing to inform AUSTRAC that dozens of player accounts opened using incorrect names were used to filter fraudulent funds for organised crime.
“Tabcorp takes its compliance obligations extremely seriously [and] is reviewing the nature of the proceedings and will inform the market of its intended response,” the company said in a statement this morning.
The operator’s share price fell 4.22% on the Australian Securities Exchange (ASX) following today’s announcement.