Australia’s financial crime watchdog AUSTRAC has ordered a leading Sydney club to appoint an external auditor amid concerns its anti-money‑laundering (AML) controls may not be strong enough to prevent organized crime from exploiting poker machines at the venue.
The order, made under section 162 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006, requires an independent auditor to assess whether Bankstown District Sports Club in Sydney’s southwest is complying with its AML/CTF obligations.
“Poker machines can be exploited by criminals to turn cash into apparently legitimate winnings, especially where controls are weak or warning signs are missed,” said AUSTRAC’s Acting CEO Katie Miller.
“In gambling venues, criminals may repeatedly insert cash into poker machines, engage in little or no genuine play, and then cash out – turning illicit cash into funds that appear legitimate.
“That’s why it’s critical clubs and pubs understand their risks, have strong controls in place and report suspicious activity.
“Money laundering fuels organised crime and all the harm that comes with it.
“Where we see signs of systemic weaknesses, AUSTRAC will intervene to protect the community and the integrity of Australia’s financial system.”
According to information from the regulator, the audit must examine whether the club has an effective, risk‑based AML/CTF program to identify, mitigate and manage money laundering and terrorism financing risks; whether it has conducted an appropriate assessment of the risks posed by its customers, services and delivery methods; and whether it has adequate systems to monitor customers and identify suspicious behaviour linked to money laundering or terrorism financing.
The scope of the audit has been set by AUSTRAC and will be conducted at the club’s expense, it added.
The action is the latest in AUSTRAC’s heightened focus on the clubs sector, having recently launched civil penalty proceedings involving Mount Pritchard District and Community Club (Mounties).
AUSTRAC is also cracking down on the online wagering sector, having entered into an enforceable undertaking with online wagering provider Sportsbet and an enforcement investigation involving Tabcorp.
“Clubs and pubs play an important role in their communities but they also operate in a high-risk environment,” Miller said.
“Our job is to lift standards across the sector so criminal groups can’t use gambling venues to move or disguise illicit funds.”
RelatedPosts
