Australia's Tabcorp accused of failing to improve money laundering precautions

Australia’s anti-money laundering and terrorist funding watchdog, the Australian Transaction Reports and Analysis Centre (Austrac), filed civil legal proceedings against gambling group Tabcorp Wednesday, claiming that the group’s non-compliance with laws surrounding anti-money laundering and counter-terrorism makes Australia’s financial system vulnerable.

Austrac claimed that before commencing litigation it had made a long and comprehensive assessment of Tabcorp’s anti-money laundering and counter-terrorism financing compliance, and had come to the conclusion that Tabcorp had failed to take steps to make improvements.

“Noncompliance of this nature provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system,” Austrac said in a statement.

“Austrac works to keep dirty money out of our financial system, which helps protect the Australian community from serious and organised crime.”

In a subsequent press release, Tabcorp confirmed it had been targeted and commented:

“Tabcorp Holdings Limited announces that it has been advised today that civil proceedings have been brought by the CEO of Australian Transaction Reports and Analysis Centre (AUSTRAC) against Tabcorp Holdings Limited and Tabcorp’s NSW and Victorian wagering businesses.

“Tabcorp takes its compliance obligations extremely seriously [and is] reviewing the nature of the proceedings and will inform the market of its intended response.”

The maximum penalty for a contravention of the anti-money laundering and counter-terrorism financing laws is A$17 million.