AUSTRAC orders bet365 to overhaul AML controls after probe

AUSTRAC finds serious weaknesses

AUSTRAC found that bet365 failed to have a robust approach to managing money laundering risks. The regulator also found problems with how the company spotted and reported suspicious activity. The investigation follows an independent audit of bet365's operations in Australia. The audit resulted in AUSTRAC giving the company a closer look.

As a result, bet365 signed a legally binding agreement on 6 July. The agreement calls for the company to enhance its AML systems. The case demonstrates that AUSTRAC is being more aggressive — and making a statement.

bet365 must improve key systems

Under the agreement, bet365 must improve the way it manages money laundering risks. The company must also carry out regular checks to find new risks. It must improve how it finds suspicious transactions. It also needs better systems for reporting those cases.

AUSTRAC said these are the minimum standards the company must meet. If bet365 fails to follow the agreement, it could face civil penalties. The company must:

• Improve money laundering risk checks.

• Better detect suspicious transactions.

• Improve reporting systems.

• Keep checking its compliance process.

AUSTRAC says risks remain high

AUSTRAC Chief Executive Brendan Thomas said gambling businesses face a high risk of money laundering. He said the industry moves large amounts of money through online services every day. Those payments — often made quickly — may attract criminals looking to hide illegal money. Thomas said companies must keep improving their systems as risks change.

He also said weak controls can affect the whole industry. Poor systems may reduce trust and make crime harder to stop. His warning comes as AUSTRAC increases its work across the gambling sector.

Pressure grows across the industry

The action against bet365 is part of a wider push by AUSTRAC. The regulator is still taking Federal Court action against Entain over alleged failures. Entain has already set aside A$100 million for a possible penalty. That shows how expensive these cases can become.

Sportsbet also faced AUSTRAC action in the past. The company later completed the required changes — and met the regulator's standards. Last year, SkyCity and Mounties also faced action over anti-money laundering rules. These cases show AUSTRAC is watching the gambling industry closely. More companies may face reviews — and stricter rules — in the months ahead.