Australia’s anti-money laundering watchdog AUSTRAC says it has finalized its enforceable undertaking with sports betting operator Sportsbet Pty Ltd after the company addressed serious deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) controls.
The undertaking, accepted in May 2024, was offered by Sportsbet after AUSTRAC raised concerns about compliance with its AML/CTF obligations, including its approach to risk assessment, customer monitoring and suspicious matter reporting.
These issues were identified as part of AUSTRAC’s review of the corporate bookmaker sector, the regulator said in a statement.
The undertaking required Sportsbet to uplift five key areas of its AML/CTF policies and processes. Implementation of the requirements was subsequently confirmed by independent assurance, AUSTRAC added.
“When AUSTRAC identifies systemic weaknesses in a reporting entity’s AML/CTF controls, we will take enforcement action to ensure those issues are addressed,” said AUSTRAC CEO Brendan Thomas
“Sportsbet was required to undertake significant remediation to uplift its systems, controls and governance. AUSTRAC is now satisfied those requirements have been met.
“Completion of an enforceable undertaking does not lessen our expectations. Businesses like Sportsbet operating in higher-risk sectors must maintain robust, risk-based systems to prevent criminal exploitation.”
Thomas added that the online gambling sector faces “heightened threats from identity and payment fraud and it’s important that the whole sector continues to work to mitigate these threats.
“Strong AML compliance is the best way to fight financial crime – let’s work together to stamp out criminal abuse of the online gambling sector.”
RelatedPosts
