The Australian Transaction Reports and Analysis Center (AUSTRAC), a government body dedicated to combating money laundering, has mandated audits of Bet365 and Flutter-owned SportsBet. This action aims to ascertain if these two betting companies have contravened anti-money laundering rules.
AUSTRAC has declared that this move is a consequence of a comprehensive regulatory action that has evaluated entities within the corporate bookmaking sector. This follows the recent initiation of an inquiry into Entain.
Auditors will scrutinize compliance with four key aspects of anti-money laundering legislation.
Firstly, they will determine if the two operators have established and maintained an anti-money laundering and counter-terrorism financing (AML/CTF) program that incorporates risk-based systems and controls. These systems and controls must effectively identify, mitigate, and manage the risks associated with money laundering and terrorism financing.
Secondly, the auditors will examine whether the operators have conducted appropriate anti-money laundering risk assessments.
Finally, the auditors will also assess whether the boards of SportsBet and Bet365 have provided continuous oversight of anti-money laundering endeavors.
In conclusion, authorities will examine if these businesses are effectively monitoring their clientele, to identify, lessen, and manage potential risks associated with their services that could involve or facilitate money laundering or terrorist financing.
The audit’s findings could result in additional regulatory measures, with auditors mandated to submit their reports within 180 days.
The two operators will be obligated to cover the costs of the auditor’s services.
The agency stated that the audit’s outcomes will aid Sportsbet and Bet365 in adhering to their anti-money laundering and counter-terrorism financing responsibilities and inform Austrac regarding the necessity of further regulatory actions.
A warning to the sector
Austrac’s CEO, Nicole Rose, emphasized that the actions taken against the two prominent operators should serve as a cautionary message to the entire industry. The agency also issued a warning that other betting companies could face similar actions, as they announced the investigation into Entain.
“Sportsbet and Bet365 are among the largest players in the corporate betting sector. Austrac is issuing a notice to the entire industry to improve their standards.
“Ultimately, enforcing compliance is crucial for safeguarding the community. Money laundering fuels organized crime and its associated detrimental effects. We require frontline businesses to fully comply with the AML/CTF Act – to comprehend and mitigate their risks and report suspected criminal activities.”
Australias financial intelligence agency, Austrac, will act decisively against any suspected rule-breaking. This safeguards businesses from exploitation and ensures the safety of Australians.
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