Tabcorp faces ‘dirty money’ Court charges

Tabcorp faces ‘dirty money’ Court charges

Wednesday, July 22, 2015 Totally Gaming
Austrac says Tabcorp has failed to comply with anti money-laundering laws

Tabcorp could face a fine of up to AUS$17m (€11.5m/$12.6m) should it be found guilty of breaching Australian anti money-laundering laws.

The gaming operator is the subject of a civil penalty action by financial intelligence unit Australian Transaction Reports and Analysts Centre (Austrac) in the Federal Court.

Austrac says that three Tabcorp group companies – Tab Limited, Tabcorp Holdings Limited and Tabcorp Wagering – are charged with “extensive, significant and systemic non-compliance with Australia's anti-money laundering and counter-terrorism financing legislation”.

Paul Jevtovic, Austrac’s chief executive, added that the subsidiaries have been given a number of opportunities to improve standards and compliance but failed to make necessary changes.

“Non-compliance of this nature provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system,” Jevtovic said. “Austrac works to keep dirty money out of our financial system, which helps protect the Australian community from serious and organised crime.

“As we have demonstrated in this case, we are prepared to work with businesses to improve their systems and controls, but will take strong action when they fail to make the necessary improvements to address serious and systemic non-compliance.”

The gambling industry has long been considered a high-risk sector for money laundering because criminals can exploit the high cash turnover and large volume of transactions to camouflage illegitimate transactions.

A Tabcorp statement read: “Tabcorp takes its compliance obligations extremely seriously. Tabcorp is reviewing the nature of the proceedings and will inform the market of its intended response.”
 

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