AUSTRAC investigates Bet365 and Sportsbet over AML concerns

The Australian Transaction Reports and Analysis Center (AUSTRAC) has launched a probe into two of the biggest names in Australia’s sports gambling industry – Bet365 and Sportsbet – on grounds that the two companies “may have contravened, is contravening or proposes to contravene the anti money laundering (AML) and counter terrorism financing (CTF) law and rules”.

To that effect, AUSTRAC has assigned external auditors to evaluate Bet365 and Sportsbet’s level of compliance with AML/CTF laws and to investigate the allegations of non-compliance within both companies. The regulator awaits findings from the auditors’ reports before taking any further steps. Notice of this move was sent to Sportsbet and Hillside Pty Ltd, the parent company of Bet365, last Wednesday.

The AUSTRAC’s move to “conduct a supervisory campaign within the corporate bookmaking sector” started in September when the financial watchdog launched an investigation into Entain – owner of Ladbrokes, Coral, and other sports betting brands – for concerns of AML and CTF violations. According to the law, betting companies are mandated to evaluate their customers and monitor the flow of money to prevent aiding and abetting financial crimes. Any company found to have failed in these assessments will be fined or have its licence suspended.

“Ultimately, enforcing non-compliance is about protecting the community. Money laundering feeds organised crime and all the harm that comes with it. We need businesses at the front line to fully comply with [the] Act – to understand and mitigate their risks and report suspected crimes,” said Nicole Rose, chief executive of AUSTRAC.

“Austrac will not hesitate to take action where suspected non-compliance is identified, to protect businesses from being exploited and protect the Australian community from harm.”

Spokespersons from both operators have responded to the notice, with Sportsbet emphasising it takes its responsibility under the AML/CTF laws seriously and that it continues to invest heavily in compliance. Bet365 also replied that the company is dedicated to keeping Australia’s financial laws given “the robust policies and procedures in place to minimise risks associated with money-laundering and counter terrorism financing”.

AUSTRAC has directed the companies to nominate three auditors within the next 28 days. It added that the final report must contain facts that point to the AML/CTF laws the companies are following or contravening. The report must then be submitted within 180 days.

If found guilty, the sports betting giants might be looking at fines running multiple millions.

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