Austrac (The Australian Transaction Reports and Analysts Centre) has recently filed civil court action against Tabcorp, one of the country’s biggest betting operators. The lawsuit has charged the gambling company with failing to take the necessary precautions against money laundering.
It seems that Austrac has been dealing with Tabcorp for quite some time, as the organisation announced that it has made comprehensive assessment of Tabcorp’s anti-money laundering practices. After the investigation, Austrac concluded that Tabcorp had not taken any steps to make improvements in order to comply with the country’s anti-money laundering and counter-terrorism financing laws.
There are three Tabcorp companies that have come under fire: Tab Limited, Tabcorp Holdings Limited and Tabcorp Wagering. They face a penalty worth up to $17 million. Money laundering is a serious issue in the gambling world. It is important for casino operators and betting providers to ensure that this practice does not take place within their businesses.
Fuelling organised crime, money laundering is a dangerous crime that harms millions, and gaming operators must ensure that they protect their businesses from this offence. Paul Jevtovic, chief executive of Austrac, said: “Non-compliance of this nature provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system,” says Austrac Chief Executive Paul Jevtovic.
“Austrac works to keep dirty money out of our financial system, which helps protect the Australian community from serious and organised crime”. David Attenborough, Chief Executive of Tabcorp has refused to make an official statement; however, he has noted that his company takes its responsibilities seriously.
After reviewing the court proceedings, Tabcorp will make a statement on the actions it plans to take in order to rectify the situation. Tabcorp’s shares have already started plummeting, so it will be interesting to see how this case goes. We will keep you updated as the situation progresses.