Tabcorp Settles with AUSTRAC in Money-Laundering Case
Australian wagering giant, Tabcorp, has agreed to pay a record A$45 million fine to the Australian Transaction Reports and Analysis Centre (AUSTRAC) to resolve Federal Court proceedings related to non-compliance with anti-money laundering and counter-terrorism financing (AML/CTF) laws.
As part of the settlement, Tabcorp will make a number of admissions of non-compliance with its anti-money laundering and counter terrorism financing obligations under its previous AML/CTF program. Although the company insists that the deficiencies were not intentional, it has already made a number of amendments to its policies.
In 2015, Tabcorp adopted a new anti-money laundering program which included significant investment in improved capabilities, processes, systems and controls. In addition, following the AUSTRAC action, for the first time, Tabcorp appointed a new chief risk officer, Clinton Lollback, who came from a similar position at Macquarie.
“Tabcorp acknowledges that there were a number of deficiencies in its former AML/CTF program, which resulted in a serious contravention of the AML/CTF legislation,” stated a spokesperson for the company.
Tabcorp, which manages TAB, Sky Racing, Sky Sports Radio and Luxbet, handles around 875 million bets every year, as well as other transactions. Tabcorp announced that it would recognise the $45 million fine as a significant item in its full-year financial results. They are currently waiting for the Federal Court to approve the agreement.
AUSTRAC initially launched legal action against Tabcorp in July 2015 against its NSW and Victorian wagering businesses. The original complaints included a list of credit betting incidents and credit card fraud worth millions of dollars with “high risk” customers. In April 2016, AUSTRAC amended the statement of claim to include additional allegations. If the court accepts this settlement, the case may be resolved and AUSTRAC has agreed to withdraw its other allegations of non-compliance.
March 27, 2017