If SportsBet or Bet365 is deemed non-compliant with the rules, Austrac may take further action, such as imposing a court-ordered fine. Austrac, a government body focused on combating money laundering, stated that this action stems from an extensive supervisory campaign targeting entities within the corporate bookmaker sector and follows an ongoing investigation into Entain.
Auditors will evaluate compliance with four areas of anti-money laundering (AML) laws. The first area is whether the two operators have implemented and maintained an AML/CTF program with risk-based systems and controls to effectively identify, mitigate, and manage money laundering and terrorism financing risks. They will also assess whether proper money laundering risk assessments were conducted by the operators. The auditors will examine whether the boards of SportsBet and Bet365 have ongoing oversight of anti-money laundering measures. Finally, they will assess whether the businesses adequately monitor customers to identify, mitigate, and manage any risk related to money laundering or terrorism financing.
The auditors are obligated to provide their findings within 180 days, and the results of the audit may lead to further regulatory action. The costs of the auditors’ services will be borne by the two operators. Austrac stated that the outcomes of the audit will help SportsBet and Bet365 comply with AML and counter-terrorism financing obligations and will guide any required regulatory actions.
Austrac’s chief executive, Nicole Rose, emphasized that taking action against two operators of this size serves as a warning to the entire industry. When announcing the investigation into Entain, Austrac also cautioned that other bookmakers could face similar action. Austrac aims to improve industry standards by holding all operators accountable. Rose highlighted that combating non-compliance is crucial to safeguarding the community, as money laundering supports organized crime and its associated harms. Austrac expects businesses to fully comply with the AML/CTF Act, understand and mitigate risks, and report suspected crimes. The body expressed its readiness to take action when non-compliance is identified to prevent businesses from being exploited and to protect the Australian community.
