Tabcorp officially fined highest civil penalty of $45 million

Gambling company Tabcorp has been officially fined $45 million for breaking Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws.

The settlement was agreed to last month and on Thursday the Federal Court handed down the highest civil penalty in Australian corporate history.

The Federal Government’s financial intelligence and regulatory agency, AUSTRAC, targeted Tabcorp in July 2015, for extensive, significant and systemic noncompliance with Australia’s anti-money laundering and anti-terrorism financing legislation.

AUSTRAC CEO, Paul Jevtovic, revealed in a statement Tabcorp was found guilty on 108 occasions over five years.

Justice Perram found Tabcorp failed to employ a compliant AML/CTF program, provide reports about suspicious matters, and identify a customer who collected $100,000 in winnings.

“Failing to uphold a robust AML/CTF program creates opportunities for serious and organised crime and terrorist groups to conceal the movement and use of illicit funds for attacks and crimes against Australian citizens,” said Mr Jevtovic.

Jetovic also addressed the media today, revealing the ruling sends an “unequivocal message” to gambling companies.

“It wasn’t until AUSTRAC drew these deficiencies to the attention that they have been found out, he said.

“There can be no doubt that this was a serious failure in the corporate governance and the size of the penalty reflects a consistent and extensive noncompliance.

“Quite simply it failed in its obligations.”

Jetovic said the non-compliance arises from a lack of concern within the corporate industry, which in turn puts the community at risk.

Jevtovic said Tabcorp’s response, including the investment of more time towards the program and providing more resources to AML and CTF reporting, was a positive result.

“This outcome sends a clear message to boards and senior management across all industries,” he said.

While the company settled on $45 million, the total financial amount will be around $90 million once AUSTRAC’s court costs and Tabcorp’s lawyer costs are factored in.